Snapshot

Mining the future

India is home to 1,531 operating mines and produces 95 minerals – 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals.  India is the 2nd largest producer of coal. Coal production grew at CAGR 4.6% over FY14-FY20 to 730.873 MT.  Coal’s share in India’s primary energy consumption is expected to be 48% in 2040.  India is the 2nd largest crude steel producer in the world, generating an output of 106.5 MT in 2018, a growth of 3.7% Y-o-Y. India’s steel consumption rose 7.5% Y-o-Y and 7.9% Y-o-Y over the last 2 years, outpacing a 2.1% to 5% growth globally. 

  • Over 2030-31, crude steel demand/production forecasted to reach 255 MT
  • Per capita finished steel consumption also expected to rise to 158 kg by 2030-31 (from 74.1 kg in 2018)
  • Coal demand is projected to grow from 955.26 MT in 2019-20 to 1.27 BT in 2023-24

The country’s FDI Policy allows:

100% FDI through automatic route in the steel and mining sectors

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 - Dec 2020)

  • $ mn

    FDI equity inflows to coal production (Apr 2000 - Dec 2020)

  • MMT

    Aluminium production growth forecast (by FY20)

Second largest crude steel producer in the world

Second largest coal producer in the world

Fourth largest iron ore producer in the world

Metals & Mining Information Kit
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Industry Scenario

With the launch of the National Mineral Policy 2019, 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 2020 were: Coal 958 lakh tonnes, Lignite 42 lakh tonnes, Natural gas (utilized) 2323 million cu. m., Petroleum (crude) 27 lakh tonnes, Bauxite 1634 thousand tonnes, Chromite 582 thousand tonnes, Copper conc. 11 thousand tonnes, Gold 153 kg, Iron ore 204 lakh tonnes, Lead conc. 26 thousand tonnes, Manganese ore 181 thousand tonnes, Zinc conc. 117 thousand tonnes, Apatite & Phosphorite 133 thousand tonnes, Limestone 272 lakh tonnes, Magnesite 8 thousand tonnes and Diamond 3213 carat.

*The production of important minerals showing positive growth during March 2020 over March 2019 includes ‘Chromite’ (15.9%), ‘Iron ore’ (8.3%) and ‘Coal’ (4.3%).

19 coals blocks were auctioned in 2020 for commercial mining. The total expected revenue from these mines is INR 6,656 cr with average peak capacity of 51 MPTA.

The total number of steel plants producing crude steel in the country during 2019-20 is 914 and the production of crude steel between April 2020 and February 2021 was more than 93 MT. 

The production of finished steel in the country in April 2020 to January 2020 was recorded at 76.04 MT. The exports between April 2020 and February 2021 stood at 9.4 MT.*

* 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

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.

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.

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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.

 

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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.

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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.

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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.

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