Snapshot

Mining the future

Steel

  • India is the 2nd largest crude steel producer in the world, generating an output of 99.6 MT in 2020.
  • Domestic consumption of Total Finished Steel (alloy + non-alloy) was at 88.53 MT in 2020 as against 83.64 MT in 2016.
    • Over 2030-31, crude steel demand/production forecasted to reach 255 MT
    • Per capita finished steel consumption is expected to rise to 160 kg by 2030-31 (from 74.7 kg in 2019-20)
    • Steel production (weight: 17.92 per cent)increased by 9.3 per cent in July, 2021 over July, 2020.

Coal

  • India is home to 1,303 mines which reported mineral production (excluding atomic, fuel, and minor minerals) in 2019-20 and produces 95 minerals – 4 fuel-related, 10 metallic, 23 non-metallic, 3 atomic, and 55 minor minerals.
  • India is the 2nd largest producer of coal. In 2020-21, all India coal production was 716.084 MT.
  • Consumption / actual supply of coal (including imports) increased from 836.93 MT in 2016-17 to 968.03 MT in 2018-19.
  • Coal is projected to remain the largest single source of electricity in India in 2040.
  • Coal production (weight: 10.33 per cent) increased by 18.7 per centin July,2021 overJuly,2020.

The country’s FDI Policy allows:

  • 100% FDI through automatic route in the steel sector
  • 100% FDI through automatic route in the mining sector
  • 100% FDI for coal and lignite under automatic route

For further details, please refer FDI Policy

  • MT

    Domestic steel production capacity by 2030

  • $ bn

    FDI equity inflows to metallurgical industries and mining (Apr 2000 - Mar 2021)

  • $ mn

    FDI equity inflows to coal production (Apr 2000 - Mar 2021)

Largest sponge iron (DRI) producer

Second largest crude steel and coal producer in the world

Fourth largest iron ore producer in the world

Industry Scenario

With the launch of the National Mineral Policy 2019 and the Mines and Minerals (Development and Regulation) Amendment Act 2021, India presents a major opportunity for investors.

India has large reserves of Iron ore, Bauxite, Chromium, Manganese ore, Baryte, Rare earth and Mineral salts.

The Metals and Mining sector in India is expected to witness a major reform in the next few years, owing to reforms such as Make in India Campaign, Smart Cities, Rural Electrification, and a focus on building renewable energy projects under the National Electricity Policy as well as the rise in infrastructure development.

*The production level of important minerals in March 2021 were: Coal 960 lakh tonnes, Lignite 52 lakh tonnes, Bauxite 2,103 thousand tonnes, Chromite 601 thousand tonnes, Copper conc 11 thousand tonnes, Iron ore 227 lakh tonnes, Lead conc 41 thousand tonnes, Manganese ore 331 thousand tonnes, Zinc conc 164 thousand tonnes, Limestone 391 lakh tonnes, Phosphorite 124 thousand tonnes, Magnesite 12 thousand tonnes, Gold 148 kg, and Diamond 34 carat.

*The production of important minerals showing positive growth during March 2021 over March 2020 included Manganese Ore (80.1%), Lead conc. (74.9%), Phosphorite (57.0%), Copper conc. (50.2%), Chromite (45.8%), Limestone (45.6%), Magnesite (44.9%), Zinc conc. (43.2%), Bauxite (33.4%),  Lignite (25.3%), Iron ore (13.7%), and Coal (0.2%)

19 coals blocks were auctioned in 2020 for commercial mining. The total expected revenue from these mines is around INR 7,000 cr with a combined peak capacity of 51 MPTA.

The second tranche of auction for commercial coal mining offered 67 mines for sale of coal in March 2021.

* provisional

 

GROWTH DRIVERS

  • Cost advantage

    Cost advantage in steel and alumina production-conversion

  • Rising demand from infrastructure and transportation sectors

    Schemes such as Housing for all by 2022 and expansion of railway network

  • Unexplored mines

    Only 20% of the total reserves have been mined till now

  • Supportive government policies

    Permission granted to captive mines to sell coal in open market

  • Atmanirbhar Bharat Abhiyan

    Production Linked Incentive scheme in specialty steel sector has been introduced under Atmanirbhar Bharat 3.0 package

  • Single Window Clearance Portal

    A unified platform that facilitates the grant of clearances and approvals required for starting a coal mine in India

arrowarrow

Production Linked Incentives (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Specialty Steel for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

  • INR 6,322 cr

    Scheme outlay

Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

Major Investors

Latest In Metals & Mining

Press ReleaseJul 26, 2021

FAQs on Production Linked Incentive (PLI) Scheme for Specialty Steel

Read Now

Press Release

FAQs on Production Linked Incentive (PLI)…

Annual Report

Annual Report 2020-21 | Ministry of Mines

Report

Economic Survey 2020-21: Volume 1

Report

Economic Survey 2020-21: Volume 2

Regulations

Standard Operating Procedure (SOP) for…

FAQs

Frequently
Asked Questions

Who grants Mining Leases (ML) and Prospecting License-cum-Mining Lease (PL-cum-ML)?

As per the Mines and Minerals (Development & Regulation) Act (MMDR) Amendment Act 2015, the grant of Mining Leases (ML) and Prospecting License-cum-Mining Lease (PL-cum-ML) happens only through an auction process.

For more information, click here.

Was it helpful?

Who grants mineral concessions in India?

The State Governments grant the mineral concessions for all the minerals located within the boundary of the State, under the provisions of the MMDR Act, 1957, and Mineral Concession Rules (MCR), 1960. Under the provisions of the MMDR Act, 1957 and MCR, 1960, prior approval of the Central Government is required in the several cases.

For more information, click here.

 

Was it helpful?

Who has the authority to grant mining license?

Mineral Resources Department & respective State Government is empowered to sanction Prospecting License/Mining Lease.

For more information, click here.

Was it helpful?

What are the precautions to be taken for filing applications for obtaining Mineral Concessions?

The application must be filled within the prescribed format as per Mineral Concession Rule 2016. Entries must be complete in all respect and should be supported with documentary evidences as per the Rule.

For more information, click here.

Was it helpful?

What kind of mines does Central Government own?

The Central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India.

For more information, click here.

Was it helpful?

VIEW ALL

Invest India Timeline

2021
DRAG TO VIEW MORE
pin
World Bank raises India's FY22 GDP forecast to 10.1% from 5.4% earlier

The improvements came on the back of the country’s vaccination drive, which was... Visit Page

Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity