The Indian government has approved the National Critical Mineral Mission (NCMM) with a total budget of ₹34,300 crore over seven years.
Financial Allocation
The government will spend ₹16,300 crore, while an additional ₹18,000 crore will be invested by public sector undertakings (PSUs) and private companies.
Objectives and Key Features of the Mission
Enhancing Domestic Exploration
A significant portion of the mission’s funds will be allocated to intensifying mineral exploration across the country and in offshore areas.
Reducing Import Dependence
India heavily relies on imports for critical minerals like lithium, cobalt, nickel, and rare earth elements. These minerals are essential for electric vehicles (EVs), battery manufacturing, and renewable energy technologies. The mission aims to boost domestic production to reduce import dependence.
Developing Processing and Recycling Capabilities
The mission will encourage investment in mineral processing parks, recycling technologies, and research on sustainable extraction methods. It will focus on efficient resource utilization and minimizing environmental impacts.
Overseas Mineral Acquisitions
Public sector enterprises (PSUs) and private companies will be encouraged to acquire mineral assets abroad. This will help secure a steady supply chain for India’s critical mineral needs.
Regulatory and Financial Support
Regulatory approvals will be streamlined, making mineral exploration and development easier. Financial incentives will be provided to attract private investment.
Key Implementation Measures
Expedited Mining Approvals
A fast-track regulatory process will be established for mineral mining projects to speed up mining activities.
Stockpile Development
A strategic stockpile of critical minerals will be built to safeguard India’s supply chains.
Policy Reforms
In 2023, the Mines and Minerals (Development and Regulation) Act, 1957 was amended, enabling the auction of 24 strategic mineral blocks.
Geological Survey of India (GSI) Exploration Projects
In the past three years, GSI has initiated 368 mineral exploration projects, with 227 new projects planned for 2025-26.
Import Duty Waivers
The FY25 budget has removed customs duties on several critical minerals to boost domestic processing and manufacturing.
Impact on India’s Energy Transition
The NCMM is expected to secure mineral supply chains for India’s clean energy sector, boost domestic manufacturing of EV batteries and renewable energy components, strengthen India’s position in the global critical minerals market, and attract foreign and private investment in mining and mineral processing.
Challenges & Way Forward
Geopolitical risks may influence overseas mineral acquisitions. Environmental concerns must be balanced with increased mining activities. Investment risks require strong policy support for private sector participation.
To address these challenges, the government plans to collaborate with research institutions, industries, and international partners to ensure a sustainable and efficient implementation of the mission.
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