Securing Critical Mineral Mission
The Government of India has launched the National Critical Mineral Mission (NCMM) with an allocated budget of ₹16,300 crore. This strategic initiative is designed to reduce dependency on imported critical minerals, vital for high-tech industries and the clean energy sector. Announced in the Union Budget 2024-25, the mission underscores India’s commitment to achieving self-sufficiency in the mineral sector.
Key Objectives
- Minimize reliance on imported critical minerals.
- Align with the Atmanirbhar Bharat initiative to strengthen domestic mineral capabilities.
- Enhance exploration and mining activities within India and offshore locations.
- Identify and prioritize 24 critical minerals, including lithium, cobalt, and nickel, essential for clean energy technologies.
Developing the Value Chain
The mission focuses on the entire mineral value chain, covering:
- Exploration & Mining: Expanding domestic and offshore mineral extraction.
- Processing & Beneficiation: Enhancing refining and recovery processes.
- Recycling & Reuse: Extracting critical minerals from end-of-life products.
- Regulatory Acceleration: Establishing a fast-track approval system for mining projects to boost operational efficiency.
Financial Investments & Incentives
- Expected to attract ₹18,000 crore in investments from public sector undertakings (PSUs) and private entities.
- Financial incentives to promote mineral exploration and extraction.
- Encouraging the recovery of critical minerals from mining overburden and tailings.
International Collaborations & Asset Acquisitions
- Encourages Indian PSUs and private companies to acquire critical mineral assets abroad.
- Strengthens trade relations with resource-rich nations to secure a steady supply chain.
Boosting Research & Development
- Establishment of mineral processing parks to advance refining capabilities.
- Investment in R&D for critical mineral technologies to foster innovation.
- Creation of a Centre of Excellence on Critical Minerals to drive industry advancements.
Legislative Reforms & Expansion
- Amendments to the Mines and Minerals (Development and Regulation) Act, 1957 in 2023 to facilitate exploration and mining operations.
- The Geological Survey of India (GSI) actively conducting 195 ongoing exploration projects, with an additional 227 projects planned for FY 2025-26.
Customs Duty Reforms
- The elimination of customs duties on various critical minerals in the 2024-25 budget to incentivize domestic processing and production.
Advancing the Green Energy Transition
The NCMM plays a crucial role in India’s journey towards a green energy future. By securing a reliable supply of essential minerals, the mission strengthens clean energy technologies, supports economic self-sufficiency, and reinforces India’s commitment to sustainable development.
