New Delhi: Coal India Limited (CIL) has signed a non-binding Memorandum of Understanding (MoU) with Chhattisgarh Mineral Development Corporation Ltd (CMDC) to collaborate on the exploration and exploitation of critical minerals and other minerals of mutual interest. CMDC is a government-owned enterprise of Chhattisgarh.
The development was disclosed by CIL in a regulatory filing on October 6, 2025, and marks a significant shift in the company’s strategy to align with India’s growing demand for minerals essential to clean energy technologies and advanced manufacturing.
Why Critical Minerals Matter for India’s Green Transition
Critical minerals like lithium, cobalt, nickel, graphite, copper, and rare earth elements are essential components in electric vehicle (EV) batteries, solar panels, wind turbine magnets, energy storage systems, and power transmission infrastructure.
India formally identified 30 critical minerals in 2023, citing their economic importance and supply vulnerability. This classification underlines the strategic need to secure domestic resources to support India’s green energy transition and reduce reliance on imports.
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MoU Aligned with National Critical Mineral Mission (NCMM)
The MoU comes at a key moment, following the launch of the National Critical Mineral Mission (NCMM) in 2025. The mission empowers the central government to fast-track exploration, auctions, and production of 24 high-priority minerals by amending the Mines and Minerals (Development and Regulation) Act (MMDR).
A major component of the NCMM includes a long-term exploration programme (2024–2031) led by the Geological Survey of India (GSI) to identify and map domestic reserves of critical minerals. The goal is to build a complete value chain — from exploration to processing and recycling.
Incentives for Recycling and Supply-Chain Resilience
To complement exploration efforts, the Indian government has also approved a ₹1,500 crore incentive scheme aimed at promoting the recycling of critical minerals from secondary sources. The initiative is intended to reduce import dependence, increase supply security, and contribute to India’s broader clean energy and net-zero emissions goals.
Strategic Shift for Coal India
The MoU with CMDC represents a strategic diversification for Coal India, which has historically focused on coal mining. With global energy dynamics shifting toward renewables and low-carbon technologies, CIL’s move into the critical minerals sector is both timely and aligned with national priorities.
The partnership is expected to leverage CMDC’s local knowledge and mineral assets in Chhattisgarh, a resource-rich state, while CIL brings in operational scale, project execution capabilities, and central government backing.
About Coal India Limited (CIL)
Coal India Limited (CIL) is the world’s largest coal producer and operates under the Ministry of Coal, Government of India. As a public sector undertaking, CIL plays a vital role in meeting India’s energy needs through coal mining and distribution. In recent years, CIL has also begun diversifying into new sectors, including renewable energy, critical minerals, and clean technology, to align with India’s long-term energy transition and sustainability goals.
