Advantage India
Demand
Growth
* Being the third largest energy consuming country in the world, there is always increased demand for power and electricity in the country, and hence the surge in demand for coal.
* Demand for steel is likely to grow by ~10% as the government’s augmented focus on infrastructural development continues with increased construction of roads, railways, airports, etc.
* In FY25, India has committed to achieve 50% of cumulative electric power installed capacity from non-fossil sources by 2030.
* India has set the targets of achieving a total crude steel capacity of 300 million tonnes per annum (MTPA) and total crude steel demand/production of 255 MTPA by FY31.
* Aluminum and zinc demand in India is rising, driven by growth in infrastructure, construction, steel, automotive, and the expanding EV sector. Zinc demand is expected to double in 5–10 years
Attractive
Opportunities
* In January 2025, the Ministry of Steel has introduced the PLI Scheme 1.1 for specialty steel, covering five product categories, which aligns with the existing PLI Scheme. This initiative aims to encourage greater participation in response to industry requests for relaxation. The PLI Scheme 1.1 will be open for applications from January 6 to January 31, 2025, and will be implemented from FY26 to FY30.
* India’s mining & construction equipment sector is set to grow 19% annually, adding Rs. 8.5 lakh crore (US$ 99.3 billion) to the economy and 20 million jobs by 2030, backed by policy support and technology upgrades.
* Under the PLI Scheme for Specialty Steel, 57 MoUs with 27 companies have been signed, attracting investments of US$ 3.55 billion (Rs. 29,500 crores), creating an additional capacity of 25 MT and generating employment for 17,000 people by FY 2027-28. As of December 2023, companies have invested US$ 1.55 billion (Rs.12,900 crores), with an expected investment of US$ 360 million (Rs. 3,000 crores) in FY'24. Five units have already commenced production, and nine more are set to begin operations in the last quarter of FY24.
Policy
Support
* Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 enabled captive mines owners (other than atomic minerals) to sell up to 50% of their annual mineral (including coal) production in the open market.
* In December 2023, the Ministry of Mines proposed capping performance security and upfront amounts for mining critical minerals to attract more bidders, reduce barriers to participation in auctions and expedite the process for mining leases.
Competitive
Advantage
* India holds a fair advantage in cost of production and conversion costs in steel and alumina.
* India is the second-largest crude steel producer in the world.
* India is the 2nd largest Aluminium producer, 3rd largest lime producer and 4th largest iron ore producer in the world.
NMDC Ltd
Incorporated in 1958 as a Government of India fully owned public enterprise, National Mineral Development Corporation (NMDC) is under the administrative control of the Ministry of Steel, Government of India. Since inception, it has been involved in the exploration of wide range of minerals including iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc. NMDC is India's single largest iron ore producer, producing about 40 MT of iron ore from four fully mechanised mines (Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State), Donimalai Iron Ore Mine and Kumaraswamy Iron Ore Mine (Karnataka State)). Other than Iron Ore, NMDC is the only organised producer of diamond in India from its Majhgawan mine at Panna, Madhya Pradesh. The company has been categorised by the Department of Public Enterprises as "NAVRATNA" Public Sector Enterprise in 2008. State-run NMDC posted a net profit of Rs.1,483 crore (US$ 173.2 million) for the March quarter, up around 4.8% from a year ago. The growth was driven by higher sales of iron ore and pellets.
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Vedanta Limited
Vedanta Limited is one of the world's leading diversified natural resources companies. The company’s main businesses focus on zinc, lead, silver, aluminium, copper, iron ore, oil & gas, and commercial power, while its operations span across India, South Africa, Namibia, Ireland, and Australia. The company holds industry-leading market shares across its core divisions. Vedanta Limited is a Vedanta Group company. They posted a strong performance in the fourth quarter, with consolidated net profit soaring 154%. Revenue from operations also saw a healthy 14% rise, reaching Rs. 40,455 crores (US$ 4.72 billion)
Read MoreCoal India
Coal India Limited (CIL) is a state-owned coal mining corporation which came into existence in November 1975. It has been awarded the status of Maharatna company. With its normal production of 79 million tonnes (MT) in the year of its establishment, Coal India Limited is today the world's largest coal producer. CIL circulated through 83 mining areas, seven full-owned coal producer subsidiaries and one mining scheme and consulting company spread across eight provincial states of India. CIL manages 200 other establishments such as workshops, hospitals. In addition, 21 training institutes and 76 vocational training institutes are also managed by CIL. Indian Institute of Coal Management (IICM), a state-of-the-art management training ‘Centre of Excellence’ is the largest corporate training institute, operated under CIL and conducts multi-disciplinary management development programmes. Coal India delivered a strong performance in the March 2025 quarter, with net profit rising 12% year-on-year to Rs. 9,604 crore (US$ 1.12 billion). However, despite the earnings boost, the company fell short of its annual production target.
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