India’s state-owned mineral explorer, the National Mineral Development Corporation (NMDC), is advancing exploratory efforts into coal reserves in Canada as part of a broader strategy to secure critical raw materials for the steel sector. The initiative marks a significant pivot in resource-supply planning for one of the country’s most foundational industries, with implications for infrastructure, urban construction and future industrial resilience.
NMDC’s interest in Canadian coal emerges against a backdrop of rapidly expanding steel production goals in India, where officials have set ambitious capacity targets for the coming decade. Reliable access to high-quality coking coal — the specialised fuel needed to power blast furnaces in steelmaking — has long been a bottleneck, with domestic production unable to meet the sector’s technical and quality requirements. As a result, India currently imports the vast majority of its coking coal needs, exposing manufacturers to price volatility and supply chain risks.The discussions with Canadian counterparts were underscored by a recent high-level meeting between Indian and Canadian officials aimed at strengthening cooperation on minerals, clean energy and sustainable industrial development. This diplomatic engagement reflects a shared interest in diversifying supply chains for materials such as coking coal, lithium, cobalt and rare earth elements — all critical for both traditional heavy industry and emerging clean-technology sectors.
For cities and infrastructure planners, the stability of steel supply chains is far from an abstract concern. Steel underpins the construction of roads, bridges, residential towers and public transit systems across India’s urban centres. Escalating costs or disruptions in feedstock availability can inflate project budgets and delay delivery timelines, particularly for public-sector works and affordable housing initiatives that are central to inclusive urban growth.A senior industry strategist noted that access to stable coking coal supplies also affects the fiscal dynamics of infrastructure financing. Imported coal carries foreign exchange risks and logistics costs that can add to the price of finished steel products, ultimately influencing construction expenses and the viability of large-scale projects in both established cities and emerging metropolitan regions.
In parallel with overseas exploration, the Indian government has recently classified coking coal as a critical and strategic mineral under national mining laws, a policy move designed to unlock exploration and productive capacity domestically. This designation also streamlines regulatory processes for deep-seated deposits and may incentivise private investment in ancillary supply chains.However, even with richer domestic reserves, the quality gap — particularly in reducing ash content to meet metallurgical standards — has constrained India’s ability to rely solely on homegrown coking coal. The strategic outreach to Canada represents both a hedging of supply risks and an effort to secure longer-term raw material partnerships with geologically compatible and politically stable partners.
Urban planners and sustainability experts point out that while strengthening raw material access is vital for near-term industrial growth, parallel investments in low-carbon steelmaking technologies and recycling initiatives will be critical for aligning India’s steel sector with climate resilience goals. Looking ahead, integrating diversified supply strategies with emissions-reducing innovations may determine how effectively India balances industrial ambitions with the transition to greener infrastructure.
