Source: ET
Subject: Economics/Geography
Context: The Government of India officially notified Coking Coal as a Critical and Strategic Mineral under the MMDR Act, 1957, a major reform aimed at slashing the country’s 95% import dependence.
About Government Notifies Coking Coal as Critical & Strategic Minerals:
What is it?
- By notifying Coking Coal as a Critical and Strategic mineral, the government has moved it from the general Coal category into a high-priority bracket (Part D of the First Schedule).
- This grant provides the mineral special legal status, allowing for faster environmental clearances, exemption from public consultations, and the use of degraded forest land for mining.
Law Governing the Reform:
- Primary Act: Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
- Specific Amendment: Exercising powers under Section 11C, the Central Government amended the First Schedule.
- Fiscal Clarity: Under Section 11D(3), all royalties and auction premiums will continue to accrue to the State Governments, even if the Centre conducts the auctions.
Strategic Objectives:
- India currently imports nearly 58 million tonnes of coking coal annually. The goal is to reduce the massive foreign exchange outflow.
- Ensuring that the National Steel Policy’s target of 300 MT production by 2030 is not vulnerable to global price volatility.
- Accelerating the exploration of deep-seated deposits by inviting private sector giants with advanced technology.
About Coking Coal:
What it is?
- Coking Coal, also known as Metallurgical Coal, is a specific grade of bituminous coal. Unlike thermal coal, which is burned for electricity, coking coal is essential for steel production.
- When heated in an oxygen-free oven (carbonization), it softens, swells, and re-solidifies into a hard, porous mass called Coke.
Formation and Characteristics:
- Process: Formed over millions of years through higher pressure and heat compared to thermal coal, resulting in higher carbon content.
- Key Properties:
- Low Ash/Sulphur: High-quality coking coal must have low impurities to maintain the structural integrity of the steel.
- Caking Power: The unique ability to fuse into a solid mass.
- Reducing Agent: In a blast furnace, it strips oxygen from iron ore to produce liquid iron.
India and Coking Coal:
- India is the world’s second-largest steel producer, yet it remains Coking Coal Poor despite having vast resources.
- Domestic Resources: India possesses approximately 37 Billion Tonnes of coking coal resources.
- Geographical Distribution:
- Jharkhand: Holds the lion’s share of reserves (Jharia, Bokaro).
- Others: West Bengal, Chhattisgarh, and Madhya Pradesh.
- The Import Paradox: Despite reserves, India meets 95% of its requirements through imports (largely from Australia, Russia, and the USA).
- This is primarily because domestic coal has high ash content and requires advanced Coal Washing (beneficiation) technology.
