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Snapshot
Mining the future
Steel
- India is the 2nd largest crude steel producer in the world, with 120 MT of crude steel produced in FY’22.
- Production of Total Finished Steel stood at 111.858 MT showing a growth of 21.3% over the year.
- India Exported 13.5 MT of Finished Steel amounting to INR one lakh crores during FY’22
- Over 2030-31, crude steel actual production forecasted to reach 255 MT
- Per capita finished steel consumption is expected to rise to 160 kg by 2030-31 (from 72.3 kg in 2021)
- Steel production (weight: 17.92 %) increased by 3.3 % in June 2022 over June 2021. Its cumulative index increased by 6.6 % during April to June 2022-23 over the corresponding period of previous year.
- Domestic stainless steel demand expected to reach 20 MT by 2047
- Secondary steel sector and consumers as target of achieving 300 MT of steel capacity by the year 2030
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, all India production in 2021-22 was 777.31 MT (P) with a growth of 8.55%.
- Coal is projected to remain the largest single source of electricity in India in 2040.
- Coal production (weight: 10.33 %) increased by 31.1 % in June 2022 over June 2021. Its cumulative index increased by 31.2 % during April to June 2022-23 over corresponding period of the previous year.
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
Domestic steel production capacity by 2030
- $ bn
FDI equity inflows to metallurgical industries and mining (Apr 2000 - March 2022)
- $ mn
FDI equity inflows to coal production (Apr 2000 - March 2022)
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
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
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.
Ministry of Coal launched the fifth tranche, second attempt of fourth tranche and second attempt of third tranche of commercial coal mine auction on March 30, 2022.
The 3rd round of auction have 88 coal blocks offered and the 4th round of auction held in December 2021 offered 99 coal mines, of which 59 are fully explored with 40 partially explored.
Production level of important minerals in April 2022 were: Coal 665 lakh tonnes, Lignite 40 lakh tonnes, Natural gas (utilized) 2748 million cu. m., Petroleum (crude) 25 lakh tonnes, Bauxite 2054 thousand tonnes, Chromite 455 thousand tonnes, Copper conc. 8 thousand tonnes , Gold 111 kg, Iron ore 218 lakh tonnes, Lead conc. 26 thousand tonnes, Manganese ore 248 thousand tonnes, Zinc conc. 124 thousand tonnes, Limestone 343 lakh tonnes, Phosphorite 120 thousand tonnes, Magnesite 8 thousand tonnes, and Diamond 2 carat.
The production of important minerals showing positive growth during April 2022 over April 2021 include: Magnesite (44.3%), Manganese ore (28.9%), Coal (28.8%), Lignite (28.4%), Bauxite (18.5%), Zinc conc (10.5%), Natural Gas (U) (6.4%), and Phosphorite (0.5%).
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 Average Index of Industrial Production of Manufacturing of basic metals in the FY 2021-22 is 177.3 and has grown by 18.4%
Exports of Mica, Coal & Other Ores, Minerals including processed minerals values at $429.56 mn in May 2022 and records positive growth vis-à-vis May 2021 of 9.04%.
Recognising 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
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
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. Application deadline has been extended to 31 July 2022.
INR 6,322 cr
Scheme outlay
Ministry
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
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22 June,04:57 PM
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