The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, JANUARY 29, 2025
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the launch of the National Critical Mineral Mission (NCMM) to secure and develop India’s critical mineral resources, vital for green technologies, high-tech industries, and defense. With an outlay of ₹34,300 crore over seven years, including ₹16,300 crore in expenditure and ₹18,000 crore in expected investments by PSUs, the mission aims to build a self-reliant and resilient critical mineral value chain.
The National Critical Mineral Mission will comprehensively cover all stages of the value chain — mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products. The initiative will intensify exploration efforts in domestic and offshore regions while establishing a fast-track regulatory approval process for mining projects. Additionally, financial incentives will be introduced to promote mineral exploration and recovery from overburden and tailings.
To reduce import dependence, the mission encourages Indian PSUs and private firms to acquire critical mineral assets abroad and enhance trade with resource-rich nations. It also proposes building a national stockpile of critical minerals to ensure long-term availability and supply security.
The mission will support the development of mineral processing parks and promote the recycling of critical minerals. To drive technological advancements, it envisions setting up Centres of Excellence for Critical Minerals and fostering research in cutting-edge mineral technologies.
A whole-of-government approach will be adopted, involving collaboration between ministries, PSUs, private players, and research institutions to achieve mission objectives.
The Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023 to accelerate the exploration and mining of critical minerals. Since then, the Ministry of Mines has auctioned 24 blocks of strategic minerals, while the Geological Survey of India (GSI) has undertaken 368 exploration projects in the past three years, with 195 ongoing projects in FY 2024-25 and 227 planned for FY 2025-26.
In 2023, the government launched the S&T PRISM program, funding startups and MSMEs to bridge the gap between research and commercialization in critical minerals. Additionally, KABIL, a joint venture under the Ministry of Mines, has secured 15,703 hectares in Argentina’s Catamarca province for lithium exploration and mining.
To further bolster domestic processing capabilities, the Union Budget 2024-25 eliminated customs duties on most critical minerals, ensuring easier access and encouraging investments in processing infrastructure.
By enhancing domestic exploration, investing in overseas assets, supporting research, and facilitating industry growth, the National Critical Mineral Mission marks a transformative step toward securing India’s critical mineral supply chain. This ambitious initiative aligns with India’s Atmanirbhar Bharat vision and reinforces the country’s role in the global clean energy transition.
