Indian Economy News

Cabinet Approves 'National Critical Mineral Mission' to build a resilient Value Chain for critical mineral resources vital to Green Technologies, with an outlay of Rs. 34,300 crore (US$ 3.96 billion) over seven years

The Union Cabinet, chaired by Prime Minister Mr. Narendra Modi, has approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs. 16,300 crore (US$ 1.88 billion) and an expected investment of Rs. 18,000 crore (US$ 2.08 billion) from Public Sector Undertakings (PSUs) and other entities. This initiative aligns with the Atmanirbhar Bharat programme. It focuses on addressing challenges related to critical minerals, which are essential for high-tech industries, clean energy, and defence. The announcement for establishing the Critical Mineral Mission was made in the Union Budget for 2024-25, presented on July 23, 2024, to ensure India’s self-reliance in this crucial sector. 

The NCMM will cover all stages of the mineral value chain, from exploration to mining, beneficiation, processing, and recovery from end-of-life products. The mission will prioritise the exploration of critical domestic and offshore minerals, establishing a fast-track regulatory approval process for mining projects. Additionally, financial incentives will be provided for critical mineral exploration. In contrast, the recovery of minerals from overburden and tailings will be promoted. The mission will also support Indian PSUs and private companies in acquiring critical mineral assets abroad and strengthening trade ties with resource-rich countries. Key provisions include establishing mineral processing parks, promoting research in critical mineral technologies, and creating a Centre of Excellence. The Geological Survey of India (GSI) has already undertaken 368 exploration projects over the past three years, with 195 ongoing in Q1 of FY25. The Union Budget 2024-25 also eliminated customs duties on most critical minerals, reinforcing India’s commitment to securing these resources and developing domestic processing capabilities. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.