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 144.04 Mn Tonnes (MT), Finished Steel at 138.83 MT and consumption of finished steel at 136.65 MT in FY 2023-24
- India's finished steel production has increased by over 12.68% in 2023-24 over the same period in the previous year
- Steel consumption has grown over 13.9% to 136.25 MT in 2023-24 from 119.89 MT in 2022-23
- The steel industry has significant growth potential and aims to achieve 300 MT production capacity by 2030
Coal
- Coal production during Oct 2024 was 84.45 MT with a growth of 7.48% as compared to 78.57 MT during Oct 2023
- 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
- In FY 2023-24 cumulative coal production has increased by 11.65% 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 highest production since inception, registering 35% growth over the previous year with the production of 17.56 Lakh Tonnes of Manganese Ore in FY 2023-24
- The cumulative growth of India’s mineral production for the period Apr-Feb, 2023-24 over the corresponding period of the previous year is 8.2%
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 Jun 2024)
- $ Mn
FDI equity inflows to coal production (Apr 2000 to Jun 2024)
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
- 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.
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 parameters | FY 2014-15 | FY 2022-23 | % increase |
|---|---|---|---|
| Crude Steel Capacity (MT) | 109.85 | 160.3 | 46% |
| Crude Steel Production (MT) | 88.98 | 126.26 | 42% |
| Total Finished Steel Production (MT) | 81.86 | 122.28 | 49% |
| Consumption (MT) | 76.99 | 119.86 | 57% |
| Per Capita Steel Consumption (Kg) | 60.8 | 86.7 | 43% |
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. 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
Ministry
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
Gallery
