New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch of the National Critical Mineral Mission (NCMM) today, with an expenditure of £1.56 billion and an expected investment of £1.72 billion by public sector undertakings (PSUs) and other entities.
As part of the Atmanirbhar Bharat initiative, and recognising the essential role of critical minerals in high-tech industries, clean energy, and defence, the Indian government has undertaken several initiatives over the past two years to address challenges in the critical minerals sector.
To establish an effective framework for self-reliance in critical minerals, the Finance Minister announced the Critical Mineral Mission in the Union Budget for 2024-25 on 23 July 2024. The mission, now approved by the Union Cabinet, will cover all stages of the value chain, including exploration, mining, beneficiation, processing, and recovery from end-of-life products. It will intensify domestic and offshore exploration and establish a fast-track regulatory approval process for mining projects. Additionally, financial incentives will be provided for mineral exploration, alongside promoting recovery from overburden and tailings.
The initiative encourages PSUs and private sector companies to acquire critical mineral assets abroad and enhance trade with resource-rich nations. It also proposes the development of a national stockpile of critical minerals. Mineral processing parks will be established, and recycling efforts will be supported. Furthermore, the mission will promote research in critical mineral technologies and establish a Centre of Excellence for Critical Minerals.
A whole-of-government approach will be adopted, working closely with relevant ministries, PSUs, private companies, and research institutions. The Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023 to increase exploration and mining. The Ministry of Mines has since auctioned 24 blocks of strategic minerals, while the Geological Survey of India (GSI) has conducted 368 exploration projects in the past three years, with 195 ongoing in 2024-25.
Additionally, the government has eliminated customs duties on most critical minerals in the 2024-25 budget to enhance availability and encourage domestic processing. These efforts reflect India’s commitment to securing a sustainable supply of critical minerals.