Cabinet Approves Launch of Rs 34,300 Crore National Critical Mineral Mission
Click to start listening
Synopsis
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Critical Mineral Mission with an allocation of Rs 16,300 crore and an expected investment of Rs 18,000 crore from PSUs, aiming to reduce critical mineral imports and enhance self-reliance in the sector.
Key Takeaways
- The mission has a total outlay of Rs 34,300 crore.
- It aims to decrease dependency on imported critical minerals.
- Incentives for exploration and processing of minerals will be provided.
- Collaboration with various sectors and institutions is emphasized.
- Customs duties on critical minerals have been eliminated.
New Delhi, Jan 29 (NationPress) The Union Cabinet, led by Prime Minister Narendra Modi, has officially sanctioned the initiation of the National Critical Mineral Mission with a budget allocation of Rs 16,300 crore and anticipated investment of Rs 18,000 crore from public sector undertakings (PSUs).
During a media briefing post-Cabinet meeting, Union Minister for Information and Broadcasting Ashwini Vaishnaw emphasized that the mission is designed to diminish reliance on the importation of critical minerals and bolster self-sufficiency.
The National Critical Mineral Mission encompasses all facets of the value chain, which includes mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products.
This initiative will expedite the exploration of critical minerals domestically and within offshore territories. It seeks to establish a streamlined regulatory approval process for critical mineral mining projects, as per an official announcement.
Moreover, the mission will introduce financial incentives for the exploration of critical minerals and encourage the recovery of these resources from overburden and tailings.
Aligned with the Atmanirbhar Bharat initiative and acknowledging the vital role of critical minerals in high-tech sectors, clean energy, and defense, the Indian government has implemented several measures over the last two years to tackle challenges in the critical minerals domain.
Finance Minister Nirmala Sitharaman unveiled the establishment of the Critical Mineral Mission during the Union Budget for 2024-25 on July 23, 2024, aiming to create a robust framework for India's self-sufficiency in the critical mineral sphere.
This mission aspires to motivate Indian PSUs and private companies to procure critical mineral assets internationally and enhance trade relations with resource-abundant nations. It also plans to develop a stockpile of critical minerals domestically.
It includes provisions for creating mineral processing parks and endorsing the recycling of critical minerals.
Furthermore, it will stimulate research in critical mineral technologies and proposes the establishment of a Centre of Excellence focused on critical minerals.
Adopting a comprehensive government approach, the mission will collaborate closely with pertinent Ministries, PSUs, private enterprises, and research institutions to fulfill its goals.
The Mines and Minerals (Development and Regulation) Act, 1957 has been revised in 2023 to enhance the exploration and extraction of critical minerals.
As a result, the Ministry of Mines has auctioned off 24 blocks of strategic minerals.
The Geological Survey of India (GSI) has conducted 368 exploration projects for critical minerals in the past three years, with 195 projects currently active in FS 2024-25.
For FY 2025-26, GSI plans to undertake 227 projects focusing on various critical minerals.
To promote innovation, the Ministry introduced the Science and Technology -- Promotion of Research and Innovation in Start-ups and MSMEs (S&T PRISM) program in 2023, supporting start-ups and MSMEs to bridge the gap between research and commercialization.
Additionally, KABIL, a Joint Venture of the Ministry of Mines, has secured approximately 15,703 hectares in the Catamarca province of Argentina for the exploration and mining of Lithium.
The Indian government has eliminated customs duties on most critical minerals in the Union budget 2024-25, which will enhance the availability of critical minerals domestically and encourage industries to establish processing facilities in India. These initiatives underscore India's commitment to securing critical mineral resources, the statement concluded.
