Delegates from the two Indian firms conducted site visits and held high-level discussions in Russia last month to evaluate potential investments. While India possesses significant domestic reserves estimated at 37.37 billion tons, the nation remains heavily reliant on international markets, importing roughly 95% of the coking coal required for its massive steel production sector. By securing direct control over foreign assets, New Delhi aims to stabilize raw material costs and mitigate risks to its domestic industrial output.

The strategic shift aligns with the Mines and Minerals Development and Regulation Act, updated in January to prioritize mineral security. Beyond securing volume, the government anticipates that these reforms will catalyze private investment and the integration of advanced mining technologies. The move comes as the domestic steel industry faces mounting pressure from volatile global energy prices, particularly spikes in gas and LPG costs linked to instability in the Middle East.