In a significant move towards mineral security and green technology advancement, India’s Union Cabinet has approved the National Critical Mineral Mission (NCMM). This strategic initiative comes at a crucial time when global competition for critical minerals is intensifying.
Mission Overview
The NCMM comes with a substantial financial commitment of ₹34,300 crore spread over seven years, comprising ₹16,300 crore in direct expenditure and ₹18,000 crore in expected PSU investments. This initiative aligns with India’s Atmanirbhar Bharat (Self-Reliant India) vision and addresses the growing importance of critical minerals in high-tech industries.
Strategic Importance
Global Context
- Rising demand for critical minerals in electric vehicles, renewable energy, and defense sectors
- Growing global supply chain concerns and geopolitical tensions
- Competition with China’s dominance in critical mineral processing
- Increasing focus on sustainable and ethical sourcing
Domestic Impact
- Potential to create thousands of direct and indirect jobs
- Reduced dependency on mineral imports
- Strengthened position in global supply chains
- Support for India’s renewable energy goals
Key Components of the Mission
Comprehensive Value Chain Approach
The mission takes a holistic approach, covering:
- Mineral exploration using advanced technologies
- Mining operations with environmental safeguards
- Beneficiation processes for better mineral recovery
- Material processing with focus on efficiency
- Recovery from end-of-life products promoting circular economy
Regulatory and Financial Framework
The government has introduced several measures to streamline operations:
- Fast-track approval process for mining projects
- Financial incentives for exploration
- Elimination of customs duties on most critical minerals
- Support for mineral recovery from overburden and tailings
- Reformed mining laws through MMDR Act amendments
International Cooperation and Asset Acquisition
The mission emphasizes:
- Encouraging Indian PSUs and private companies to acquire mineral assets abroad
- Enhanced trade relationships with resource-rich nations
- Development of domestic stockpiles
- Strategic partnerships with countries rich in critical minerals
Innovation and Research Focus
The initiative includes:
- Establishment of mineral processing parks with state-of-the-art facilities
- Creation of a Centre of Excellence on Critical Minerals
- Support for recycling programs and sustainable practices
- The S&T PRISM program funding startups and MSMEs
- Industry-academia collaboration for R&D
Progress Already Made
Exploration and Mining Achievements
- GSI has undertaken 368 exploration projects
- 195 projects are active in FY 2024-25
- 227 new projects planned for FY 2025-26
- 24 strategic mineral blocks already auctioned
- Enhanced focus on using advanced exploration technologies
International Achievements
- KABIL (a Mining Ministry JV) has secured 15,703 hectares in Argentina’s Catamarca province for lithium exploration
- Ongoing negotiations with other mineral-rich countries
- Development of bilateral frameworks for mineral cooperation
Environmental and Social Considerations
- Emphasis on sustainable mining practices
- Integration of local communities in mining projects
- Focus on minimizing environmental impact
- Rehabilitation and restoration plans for mining areas
- Promotion of eco-friendly extraction technologies
Industry Support Measures
- Simplified regulatory framework
- Single-window clearance system
- Financial incentives for private sector participation
- Technology transfer support
- Skill development initiatives
Looking Ahead
This mission represents a crucial step in India’s journey toward self-reliance in critical minerals, essential for green technologies and high-tech manufacturing. The whole-of-government approach, combined with private sector participation, positions India to better compete in the global mineral market while supporting its domestic industrial growth.
Expected Outcomes
- Secure supply chain for critical minerals
- Enhanced domestic processing capabilities
- Increased employment opportunities
- Technological advancement in mining sector
- Stronger position in global mineral markets
This comprehensive approach to critical minerals development could potentially transform India’s position in the global mineral supply chain while supporting its ambitious clean energy and technology goals.
Reference: PIB
