Snapshot

Mining the Future

Steel

  • Steel sector has witnessed tremendous growth and India has emerged as a global force in steel production and the 2nd largest producer of steel in the world
  • India’s cumulative production of Crude Steel was 81.75 Mn Tonnes (MT), Finished Steel at 77.30 MT and consumption of finished steel at 75.66 MT, from Apr-Oct, 2023-24
  • India's finished steel production has increased by over 7% in Apr-Oct 2023-24 over the same period in the previous year
  • Steel consumption has grown over 14% to 75.662 MT in Apr-Oct 2023-24 from 65.940 MT in Apr-Oct 2022-23
  • The steel industry has significant growth potential and aims to achieve 300 MT production capacity by 2030

Coal

  • Coal production during Dec 2023 was 92.87 MT with a growth of 10.75% as compared to 83.86 MT during Dec 2022
  • With an objective to enhance coal availability, the Ministry of Coal has offered 103 coal/lignite blocks for auction under the 7th round of auction and a total of 92 coal mines were auctioned under commercial auctions
  • Till Dec 2023, cumulative coal production has increased by 12.47% over the previous year
  • Coal is the major source of energy in India, and the demand will continue with likely peak between 2030-2035
  • Lignite reserves in the country are estimated at around 46.20 Bn Tonnes (as of 01.04.2022)

Minerals

  • MOIL Limited has recorded its 2nd highest production since inception, registering 6% growth over the previous year with the production of 13.02 Lakh Tonnes of Manganese Ore in FY 2022-23
  • The cumulative growth of India’s mineral production for the period Apr-Sept, 2023-24 over the corresponding period of the previous year is 8.7%

The country’s FDI Policy for the metals and mining sector 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

    Coal production in 2023-24

  • $ Bn

    FDI equity inflows to Metallurgical Industries and Mining (Apr 2000 to Dec 2023)

  • $ Mn

    FDI equity inflows to coal production (Apr 2000 to Dec 2023)

India is the largest sponge iron (DRI) producer

2nd largest crude steel and coal producer in the world

4th 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 looking to invest in the metal industry in India.

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.

A major segment or iron & steel industry is the segment of secondary producers which contributes more than 40% to the production of crude steel. The role of secondary steel sector in infrastructure development is immense. 

Export duty on Iron ores/concentrates and iron ore pellets was raised to 50% and 45% respectively. In addition, 15% export duty was imposed on pig iron and several steel products.

Recognizing the importance of bringing sustainability in coal mining, a “Sustainable Development Cell” has been created in Ministry of Coal and in all coal PSUs to promote adoption of better environment management practices in coal mines.

* Provisional

 

Key parametersFY 2014-15FY 2022-23% increase
Crude Steel Capacity (MT)109.85160.346%
Crude Steel Production (MT)88.98126.2642%
Total Finished Steel Production (MT)81.86122.2849%
Consumption (MT)76.99119.8657%
Per Capita Steel Consumption (Kg)60.886.743%

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 of minerals 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

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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. The last date of application was 15th Sept 2022. The Ministry of Steel has signed 57 MoUs with 27 companies which is expected to generate an investment of ~INR 30,000 Cr with an additional capacity creation of about 25 MT of specialty steel in the next 5 years.

  • INR 6,322 Cr

    Scheme outlay

Industrial Land Bank Portal

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

Investible Projects

Investment Opportunities in Metals & Mining

    Major Investors

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    FAQs

    Frequently
    Asked Questions

    Which are the concerned government offices/services under mining segment?

    Following are government departments under mining sector:

             i.   The Ministry of Mines, Government of India

             ii.  The Geological Survey of India

             iii. The Indian Bureau of Mines

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    What are the Existing Legislative Provisions regarding safety, health and welfare of mine workers?

    Under the Constitution of India, safety, welfare and health of workers employed in mines are the concern of the Central Government (Entry 55- Union List- Article 246). The objective is regulated by the Mines Act, 1952 and the Rules and Regulations framed thereunder which are administered by the Directorate- General of Mines Safety (DGMS), under the Union Ministry of Labour and Employment.
    A list of the subordinate legislation under the Mines Act administered by DGMS are:
    1) Coal Mines Regulations, 1957. 
    2) Metalliferous Mines Regulations, 1961.
    3) Oil Mines Regulations, 1984. 
    4) Mines Rules, 1955. 
    5) Mines Vocational Training Rules, 1966. 
    6) Mines Rescue Rules, 1985. 
    7) Mines Creche Rules, 1966.  
     

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    Will ITC be available on steel, timber and sometimes cement which are used in the underground mines to provide a protective device for security purpose?

    Credit will not be available, if these goods are supplied for construction of an immovable property. 
    But if these are temporarily placed for protective purposes, credit will be available.

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    What are the activities of ENVIS Centre, MINENVIS ?

    Maintains a database management system to cater to the requirements of various users/ 
    stakeholders of the mineral industry and regularly publishes Newsletters and Monographs.
     

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    Will the basic exemption limit from GST be applicable to the tiny and micro segment in mining?

    Yes, the basic exemption limit of $15,385 ($7693 in the case of special category States) is applicable to the tiny and micro segment even in mining. However, a person engaged in making taxable supply and having aggregate annual turnover (more than $15,385 in any State other than the special category States) would be liable to obtain registration under GST. The return has to be filed on monthly basis by regular taxable persons and on quarterly basis by the taxable persons registered under the composition scheme. 

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