Govt launches ₹ 34,300 crore mineral mission for green tech security

The mission, which is part of the Atmanirbhar Bharat project, would streamline the exploration, mining, processing, and recycling of key minerals while also encouraging international collaboration and study. This strategic effort is expected to boost India’s mineral security while also driving sector innovation.

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has authorised the launch of the National Critical Mineral Mission (NCMM), which will cost ₹ 16,300 crore and expects PSUs to invest ₹18,000 crore, among other things.

As part of the Atmanirbhar Bharat project and in recognition of the vital role of critical minerals in high-tech sectors, clean energy, and defence, the Indian government has launched a number of initiatives over the last two years to solve critical minerals sector concerns.

There is a need for an effective structure to ensure India’s self-reliance in the important mining industry. In accordance with this goal, the Finance Minister announces the establishment of the Critical Mineral Mission in the Union Budget for 2024-25 on July 23, 2024.

The Union Cabinet has authorised the National Critical Mineral Mission, which will cover all phases of the value chain, from mineral exploration to mining, beneficiation, processing, and recovery from end-of-life goods. The mission will increase the exploration of important minerals in the country and offshore areas. It intends to create a fast-track regulatory approval process for important mineral mining projects. The mission will provide financial incentives for essential mineral discovery and encourage the recovery of these minerals from overburden and tailing.

The mission’s goal is to assist Indian public and private sector enterprises to acquire vital mineral assets abroad and expand trade with resource-rich countries. It also suggests developing a national reserve of key minerals.

The mission contains provisions for establishing mineral processing parks and promoting the recycling of essential minerals. It would also support research in critical mineral technology and propose the establishment of a Centre of Excellence on Critical Minerals.

To achieve its objectives, the mission will take a whole-of-government approach, collaborating closely with key ministries, PSUs, private firms, and research institutes.

The Mines and Minerals (Development and Regulation) Act of 1957 was revised in 2023 to increase exploration and exploitation of key minerals. As a result, the Ministry of Mines has auctioned 24 blocks of key minerals. Furthermore, the Geological Survey of India (GSI) has carried out 368 critical mineral exploration projects over the last three years, with 195 projects currently in progress in fiscal year 2024-25. Furthermore, for fiscal year 2025-26, GSI plans to undertake 227 projects for various important minerals. To encourage innovation, the Ministry established the Science and Technology – Promotion of Research and Innovation in Start-ups and MSMEs (S&T PRISM) initiative in 2023, which funds start-ups and MSMEs to bridge the gap between R&D and commercialisation.

Furthermore, KABIL, a Ministry of Mines joint venture, has acquired approximately 15703 hectares of land in Argentina’s Catamarca province for lithium exploration and extraction. The Government of India has already reduced customs taxes on the majority of key minerals in the Union Budget 2024-25. This would improve the availability of essential minerals in the country and encourage companies to establish processing facilities in India. These projects demonstrate India’s determination to secure crucial mineral sources.

Source: https://pib.gov.in/allRel.aspx?reg=3&lang=1