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
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
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