Govt to invest Rs34,300 cr for developing critical minerals value chain

31 Jan 2025

Govt to invest Rs34,300 cr for developing critical minerals value chain
Image source: By kallerna - Own work, CC BY-SA 4.0, https://commons.wikimedia.org
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The union government will invest Rs34,300 crore over the next seven years, to build a resilient value chain for critical mineral resources that are vital to fostering green technologies.

The union cabinet also, on Wednesday, approved the launch of the National Critical Mineral Mission (NCMM) involving government spending of Rs16,300 crore and an estimated Rs18,000 crore investment by public sector undertakings (PSUs).

The National Critical Mineral Mission will focus on mineral exploration, mining, beneficiation, processing, and product recovery.

The mission proposes to create a fast-track regulatory approval process for accelerating and intensifying the exploration of critical minerals within the country and its offshore areas. 

The mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings.

Besides, the mission will encourage Indian companies, both in the government and private sectors, to acquire critical mineral assets abroad and enhance trade with resource-rich countries. 

The mission also proposes to create a stockpile of critical minerals within the country.

Besides, the mission provides for the setting up of mineral processing parks and supporting the recycling of critical minerals. In order to encourage research on critical mineral technologies, the mission proposes to set up a Centre of Excellence on Critical Minerals.

The mission will work closely with relevant ministries, PSUs, private companies, and research institutions to achieve its objectives.

In 2023, the government enacted amendments to the Mines and Minerals (Development and Regulation) Act, 1957 to increase the scope of exploration and mining of critical minerals. Since then, the ministry of mines has auctioned 24 blocks of strategic minerals.

Over the past three years, Geological Survey of India (GSI) has carried out 368 exploration projects for critical minerals, with 195 projects currently underway. For FY 2025-26, GSI has proposed to take up 227 projects for various critical minerals. 

The mines ministry also launched a science and technology promotion programme, called S&T PRISM, to encourage innovation by MSMEs and startups,so as to bridge the gap between R&D and commercialisation. 

KABIL, a joint venture of the mines ministry, has acquired an area of about 15,703 hectares in the Catamarca province of Argentina for exploration and mining of lithium. 

Besides, the government has eliminated customs duties on the majority of critical minerals since the beginning of the current fiscal to increase the availability of critical minerals and to encourage industry to set up processing facilities.

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