National Critical Mineral Mission

January 30, 2025

The Government of India has approved the National Critical Mineral Mission (NCMM) with a budget of ₹16,300 crore. This initiative aims to enhance India’s self-reliance in critical minerals essential for high-tech industries and clean energy. The Finance Minister announced this mission in the Union Budget for 2024-25.

Objectives of the National Critical Mineral Mission

The NCMM aims to reduce reliance on imported critical minerals.
The mission aligns with the Atmanirbhar Bharat initiative and seeks to address challenges in the mineral sector.
It focuses on increasing exploration and mining activities within India and offshore.
The mission identifies 24 critical minerals, including lithium, cobalt, and nickel, which are vital for clean energy technologies.

Value Chain Development

The mission encompasses all stages of the value chain.
This includes mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products.
A fast-track regulatory approval process for mining projects will be established to expedite operations.

Financial Incentives and Investments

The NCMM is expected to attract ₹18,000 crore in investments from public sector undertakings (PSUs) and other entities.
Financial incentives will be provided for exploration activities. T
he mission also encourages the recovery of critical minerals from overburden and tailings.

International Collaboration and Asset Acquisition

The mission promotes the acquisition of critical mineral assets abroad. Indian PSUs and private companies will be encouraged to enhance trade with resource-rich countries. This strategy aims to secure a stable supply of critical minerals.

Research and Development Initiatives

The NCMM includes provisions for establishing mineral processing parks. It also supports research in critical mineral technologies. A Centre of Excellence on Critical Minerals will be set up to encourage innovation and development in this sector.

Legislative Changes and Exploration Projects

In 2023, amendments to the Mines and Minerals (Development and Regulation) Act, 1957 were made to facilitate exploration and mining.
The Geological Survey of India (GSI) has undertaken numerous exploration projects, with 195 currently active.
An additional 227 projects are planned for FY 2025-26.

Customs Duty Elimination

To boost the availability of critical minerals, customs duties on many of these resources were eliminated in the 2024-25 budget. This move is expected to encourage industries to establish processing facilities in India.

Commitment to Green Energy Transition

The NCMM is integral to India’s transition towards green energy. By securing critical mineral supplies, the mission supports the growth of clean energy technologies. This initiative reflects India’s commitment to sustainable development and economic self-sufficiency.

« Previous Post Next Post »