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The Union Cabinet, led by Prime Minister Narendra Modi, has approved the launch of the National Critical Mineral Mission (NCMM), allocating Rs. 34,300 crore over the next seven years. Of this, ?16,300 crore will be directly invested by the government, with an additional Rs. 18,000 crore expected to come from public sector undertakings (PSUs) and other sources. This initiative is a significant step in strengthening India’s self-reliance in securing critical minerals, which are essential for clean energy technologies, high-tech industries, and defense sectors. The mission is part of the Atmanirbhar Bharat initiative, which aims to boost India’s capabilities in sectors vital to future economic growth. Recognizing the crucial role of critical minerals like lithium, cobalt, and rare earth elements in renewable energy technologies and defense, the government has been working to tackle challenges in securing a reliable domestic supply. The launch of the NCMM follows a series of initiatives by the government over the past two years, addressing the need to build a resilient and sustainable supply chain for critical minerals. The National Critical Mineral Mission is designed to cover all stages of the mineral value chain, including exploration, mining, processing, and recovery from end-of-life products. The mission will prioritize the exploration of critical minerals both within India and in offshore areas, aiming to fast-track regulatory approvals for critical mineral mining projects. Financial incentives will also be provided for mineral exploration and the recovery of these minerals from overburden and tailings. One of the key objectives of the mission is to encourage Indian PSUs and private companies to acquire critical mineral assets abroad. It will also work to enhance trade relations with resource-rich countries, ensuring access to vital minerals. In addition to this, the mission plans to develop a stockpile of critical minerals within the country to safeguard against any supply disruptions. The mission also includes the creation of mineral processing parks and the promotion of recycling of critical minerals. Research in critical mineral technologies will be encouraged, and a Centre of Excellence will be set up to support innovation in this field. The government has emphasized the need for a collaborative approach, working with relevant ministries, PSUs, private companies, and research institutions to meet these objectives. India’s approach to securing critical minerals has been strengthened by recent amendments to the Mines and Minerals (Development and Regulation) Act, 1957. These changes are aimed at encouraging more exploration and mining of critical minerals. Over the past three years, the Geological Survey of India (GSI) has undertaken 368 exploration projects, with 195 currently ongoing in 2024-25. Another 227 projects are set to begin in 2025-26. To support innovation, the Ministry of Mines launched the Science and Technology – Promotion of Research and Innovation in Start-ups and MSMEs (S&T PRISM) program in 2023, helping bridge the gap between research and commercialization. The government’s efforts to secure critical minerals have also led to the acquisition of a 15,703-hectare area in Argentina’s Catamarca province by KABIL, a joint venture of the Ministry of Mines, to explore and mine lithium. Additionally, in the Union Budget 2024-25, customs duties were eliminated on most critical minerals, making them more accessible and encouraging industries to set up processing facilities in India. Through these comprehensive efforts, India is aiming to build a sustainable and self-sufficient supply of critical minerals, ensuring long-term security for its energy transition and technological advancements. The government’s strategic actions are positioning India to play a key role in the global critical mineral supply chain, enhancing its capabilities to support green technologies and other high-tech industries. |
