Cabinet approves National Critical Mineral Mission with INR 34,300 crore allocation

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of INR 16,300 crore and an expected investment of INR 18,000 crore from public sector undertakings and other entities over the next seven years.

As part of the government’s efforts to promote self-reliance in the critical mineral sector, several initiatives have been undertaken over the past two years. The Finance Minister announced the establishment of the Critical Mineral Mission in the Union Budget for 2024-25 on July 23, 2024.

The mission covers all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products. It aims to intensify exploration activities both within the country and offshore. The mission seeks to streamline regulatory approval processes for mining projects and offer financial incentives for mineral exploration. Additionally, it promotes the recovery of minerals from overburden and tailings.

To strengthen resource acquisition, the mission encourages Indian PSUs and private companies to acquire critical mineral assets abroad and enhance trade with resource-rich countries. It also includes plans to develop stockpiles of critical minerals.

Other provisions of the mission include establishing mineral processing parks and supporting the recycling of critical minerals. It promotes research in critical mineral technologies and proposes setting up a Centre of Excellence on Critical Minerals.

The mission will collaborate with various ministries, PSUs, private companies, and research institutions to achieve its objectives.

In line with these efforts, amendments were made to the Mines and Minerals (Development and Regulation) Act, 1957, in 2023 to boost exploration and mining of critical minerals. The Ministry of Mines has auctioned 24 strategic mineral blocks and Geological Survey of India (GSI) has undertaken 368 exploration projects over the past three years, with 195 projects currently in progress for FS 2024-25. In FY 2025-26, the Geological Survey of India plans to initiate 227 projects for various critical minerals.

To promote innovation, the Ministry launched the Science and Technology – Promotion of Research and Innovation in Start-ups and MSMEs (S&T PRISM) program in 2023 to fund research and commercialization efforts. Additionally, KABIL, a joint venture under the Ministry of Mines, has acquired approximately 15,703 hectares in Argentina’s Catamarca province for lithium exploration and mining.

To support the development of the critical mineral sector, the government has removed customs duties on most critical minerals in the Union Budget for 2024-25. These measures are aimed at increasing mineral availability and encouraging the establishment of processing facilities in India.

Also read: India and US sign MoU on critical minerals