Is India Strengthening Its Domestic Production of Critical Minerals?
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Synopsis
India is taking robust steps to enhance its domestic production of critical minerals, aiming to reduce reliance on imports for EV batteries. The government's initiatives, including the National Critical Mineral Mission, mark a significant shift towards self-sufficiency in this vital sector.
Key Takeaways
- National Critical Mineral Mission initiated to enhance domestic production.
- Investment of Rs 16,300 crore planned over the next seven years.
- 368 exploration projects undertaken by Geological Survey of India.
- 100% FDI permitted for mining and exploration.
- Customs duties eliminated on 25 minerals.
New Delhi, July 30 (NationPress) In a bid to enhance domestic production and diminish India's reliance on imported lithium, cobalt, and other essential materials crucial for EV batteries, the government has implemented several key initiatives. Among these is the National Critical Mineral Mission (NCMM), which aims to boost exploration of critical minerals.
The Union Cabinet has sanctioned the NCMM to operate from 2024-25 to 2030-31, with a planned expenditure of Rs 16,300 crore and an anticipated investment of Rs 18,000 crore from Public Sector Undertakings (PSUs) and various stakeholders.
Exploration activities for critical minerals have seen a substantial increase. Over the last three years, the Geological Survey of India (GSI) has executed 368 projects focused on critical and strategic minerals. For FY 2024-25, 195 projects are currently underway, and an additional 227 projects have been green-lit for the next fiscal year, as confirmed by Minister of State for Heavy Industries, Bhupathiraju Srinivasa Varma, in a written statement to the Lok Sabha.
The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) has been revised via the MMDR Amendment Act, 2023, effective from 17.08.2023. This Amendment allows:
According to the government's policy, 100% FDI is permitted under the “Automatic” route for the mining and exploration of both metallic and non-metallic ores. Foreign firms can establish an Indian subsidiary or invest in an existing Indian entity to qualify for mining and exploration rights.
To bolster the critical minerals sector, the government has eliminated customs duties on 25 minerals and reduced Basic Customs Duties (BCD) on 2 minerals as part of the Union Budget for 2024-25.
India possesses an estimated 7.23 million tonnes (MT) of Rare Earth Elements Oxide (REO) found in 13.15 MT of monazite (a mineral containing Thorium and Rare Earths) located along coastal beaches, teri and red sand, and inland alluvium in regions such as Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. Additionally, approximately 1.29 MT of rare earths can be found in hard rock formations in Gujarat and Rajasthan.
Point of View
The government's proactive measures to enhance domestic critical mineral production reflect a strategic move towards energy independence. By reducing reliance on imports, India is positioning itself as a key player in the global EV market, ensuring sustainable development and economic growth.
NationPress
30/07/2025
Frequently Asked Questions
What is the National Critical Mineral Mission?
The National Critical Mineral Mission (NCMM) is a government initiative aimed at enhancing the exploration and production of critical minerals in India to reduce reliance on imports.
How much investment is planned under the NCMM?
The NCMM has a proposed expenditure of Rs 16,300 crore with an expected investment of Rs 18,000 crore from Public Sector Undertakings and other stakeholders.
What changes were made to the MMDR Act?
The MMDR Amendment Act, 2023 allows for 100% Foreign Direct Investment under the 'Automatic' route for mining and exploration of metal and non-metal ores.
How many exploration projects are currently underway?
As of FY 2024-25, there are 195 ongoing exploration projects, with 227 more approved for the upcoming financial year.
What are the customs duties changes for minerals?
The government has eliminated customs duties on 25 minerals and reduced Basic Customs Duties on 2 minerals in the Union Budget for 2024-25.
