Lengthy approvals, weak exploration intensity and infrastructure bottlenecks continue to hold back India’s mining sector despite the country being among the world’s leading producers of coal, iron ore, zinc and chromite, according to an Icra report released at the India Mines and Minerals Conclave 2026.
The report identifies regulatory approvals and land acquisition as among the biggest impediments to faster mine development, with a typical coal mining project in India requiring around 48 months to secure statutory clearances and land acquisition.
“The typical time to secure regulatory clearances and land acquisition in a coal mining project in India stands at around 48 months, considerably higher than 6-12 months required in most other leading coal producing countries,” the report said.
The delays significantly extend project timelines. “With a large greenfield coal project requiring around 3-5 years to achieve its peak rated capacity, the gestation period for a coal project in India to realise its full potential stands at 7-9 years,” the report noted.
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Structural Footprint
Icra said mining remains a critical sector supporting power, steel, cement, fertilisers and non-ferrous metals, but structural constraints continue to limit its growth. Public sector enterprises still dominate the industry, accounting for roughly 74% of the total value of mineral production, while private players contribute around 26%.
Coal remains the single largest contributor to mineral production value, accounting for 31.4%, followed by petroleum at 27.1%, natural gas at 13.1% and iron ore at 19.9%.
The report highlighted that India possesses a globally significant mineral resource base. The country is the world’s second-largest coal producer with an 11.13% share of global production, while ranking third globally in iron ore, zinc and chromite production. India is fully self-sufficient in iron ore and largely self-sufficient in chromite and zinc.
However, the report noted that India has only a limited presence in energy-transition minerals such as lithium, cobalt and rare earth elements, resulting in continued dependence on imports for most critical minerals required for clean energy technologies.
Commercial Shift
The study also underscored the growing role of commercial mining following sector reforms. Since commercial coal mining was opened to private participation in 2020, around 136 coal blocks have been auctioned with a cumulative peak-rated capacity of 325 million tonnes per annum (MTPA).
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While production from auctioned mines remains limited because of long development cycles and approval requirements, Icra said the capacity is expected to contribute significantly to domestic coal output over the next three to four years.
The report noted that captive and commercial coal mines have recorded a production CAGR of around 21% between FY2017 and FY2025, compared with around 4% growth for Coal India Ltd over the same period.
Coal consumption has increased sharply from about 837 million tonnes in FY2016 to nearly 1,267 million tonnes in FY2025, driven by rising demand from the power, steel and cement sectors. According to Icra, higher output from captive and commercial mines has helped contain coal import dependence and is expected to further strengthen domestic supply in the coming years.
“Streamlining the mine approval process through greater coordination between the various Central and state authorities, and facilitating land acquisition as per applicable laws, would remain a critical factor for the success of commercial coal mining in the country,” the report said.
TOPICSminingThis article was first uploaded on June twenty-four, twenty twenty-six, at seventeen minutes past nine in the night. © The Indian Express (P) Ltd