India Launches Rs 163 Bn Mission for Critical Minerals
COAL & MINING

India Launches Rs 163 Bn Mission for Critical Minerals

According to the Ministry of Mines, the Union Cabinet has approved the launch of the National Critical Mineral Mission (NCMM) on 29 January 2025. The Mission will run for seven years, from 2024–25 to 2030–31, with a proposed expenditure of Rs 163 billion and an expected investment of Rs 180 billion from Public Sector Undertakings (PSUs) and other stakeholders. NCMM seeks to secure a long-term, sustainable supply of critical minerals and strengthen India’s mineral value chains—from exploration and mining to processing, beneficiation, and end-of-life recovery.

To reduce India’s reliance on imported lithium, cobalt, and other essential materials used in electric vehicle (EV) batteries, the Government of India has undertaken several reforms:

The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) was amended through the MMDR Amendment Act, 2023, which came into effect on 17 August 2023. The key provisions include:

  • Inclusion of 24 critical and strategic minerals in Part D of Schedule-I.
  • Removal of six minerals, including lithium, titanium, and niobium, from the list of atomic minerals and their addition to the list of critical and strategic minerals.
  • Introduction of Section 11D, authorising the central government to exclusively auction mining leases and composite licences for these minerals.
  • Grant of exploration licences for 29 minerals listed in Schedule-VII.

Furthermore, the Ministry of Mines has been authorised, via an order dated 21 October 2024 under Section 20A of the MMDR Act, to auction blocks for exploration licences. So far, 24 critical and strategic mineral blocks have been successfully auctioned across four tranches in 2024.

Exploration activity has increased significantly. Over the last three years, the Geological Survey of India (GSI) has conducted 368 exploration projects targeting critical and strategic minerals. In FY 2024–25, 195 projects are underway, with another 227 approved for the next financial year.

Additionally, 100 per cent FDI is permitted through the automatic route for mining and exploration of metal and non-metal ores. Foreign entities can either establish subsidiaries in India or invest in existing Indian companies to obtain exploration and mining rights.

To bolster the critical minerals ecosystem, the government has scrapped customs duties on 25 minerals and lowered Basic Customs Duties (BCD) on two others in the 2024–25 Union Budget.

This update was shared by Shri Bhupathiraju Srinivasa Varma, Minister of State for Heavy Industries, in a written reply in the Lok Sabha.

According to the Ministry of Mines, the Union Cabinet has approved the launch of the National Critical Mineral Mission (NCMM) on 29 January 2025. The Mission will run for seven years, from 2024–25 to 2030–31, with a proposed expenditure of Rs 163 billion and an expected investment of Rs 180 billion from Public Sector Undertakings (PSUs) and other stakeholders. NCMM seeks to secure a long-term, sustainable supply of critical minerals and strengthen India’s mineral value chains—from exploration and mining to processing, beneficiation, and end-of-life recovery.To reduce India’s reliance on imported lithium, cobalt, and other essential materials used in electric vehicle (EV) batteries, the Government of India has undertaken several reforms:The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) was amended through the MMDR Amendment Act, 2023, which came into effect on 17 August 2023. The key provisions include:Inclusion of 24 critical and strategic minerals in Part D of Schedule-I.Removal of six minerals, including lithium, titanium, and niobium, from the list of atomic minerals and their addition to the list of critical and strategic minerals.Introduction of Section 11D, authorising the central government to exclusively auction mining leases and composite licences for these minerals.Grant of exploration licences for 29 minerals listed in Schedule-VII.Furthermore, the Ministry of Mines has been authorised, via an order dated 21 October 2024 under Section 20A of the MMDR Act, to auction blocks for exploration licences. So far, 24 critical and strategic mineral blocks have been successfully auctioned across four tranches in 2024.Exploration activity has increased significantly. Over the last three years, the Geological Survey of India (GSI) has conducted 368 exploration projects targeting critical and strategic minerals. In FY 2024–25, 195 projects are underway, with another 227 approved for the next financial year.Additionally, 100 per cent FDI is permitted through the automatic route for mining and exploration of metal and non-metal ores. Foreign entities can either establish subsidiaries in India or invest in existing Indian companies to obtain exploration and mining rights.To bolster the critical minerals ecosystem, the government has scrapped customs duties on 25 minerals and lowered Basic Customs Duties (BCD) on two others in the 2024–25 Union Budget.This update was shared by Shri Bhupathiraju Srinivasa Varma, Minister of State for Heavy Industries, in a written reply in the Lok Sabha.

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