New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved on Wednesday the launch of the National Critical Mineral Mission (NCMM). The mission will be implemented under the Ministry of Mines for a period of seven years from FY 2024-25 to 2030-31. The expenditure on the mission will be Rs 16,300 crore, out of which Rs 2,600 crore will be budgetary support. In addition, Rs 18,000 crore investment is expected by PSUs. The total financial outlay of the mission works out to be Rs 34,300 crore.
"As part of the Atmanirbhar Bharat initiative, and recognising the indispensable role of critical minerals in high-tech industries, clean energy, and defense, the government has undertaken several initiatives over the past two years to address challenges in the critical minerals sector. There is a need to establish an effective framework for India's self-reliance in the critical mineral sector," said the Ministry of Mines in a statement.
Finance Minister Nirmala Sitharaman had announced the setting up of the National Critical Mineral Mission in the Union Budget for 2024-25 on 23, July 2024.
According to the government, India's National Critical Mineral Mission has twin objectives of securing both domestic and foreign sourcing of India’s critical mineral supply chain and strengthening the critical mineral value chains with better technology, regulatory, and financial ecosystems to foster innovation, skill development, and global competitiveness in exploration, mining, beneficiation, processing, and recycling to ensure that the country can efficiently meet both current and future demands.
The mission will encompass all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products. The mission will intensify the exploration of critical minerals within the country and in its offshore areas. It aims to create a fast track regulatory approval process for critical mineral mining projects. Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings.
The mission aims to encourage Indian PSUs and private sector companies to acquire critical mineral assets abroad and enhance trade with resource-rich countries. It also proposes development of stockpile of critical minerals within the country.
The mission includes provisions for setting up of mineral processing parks and supporting the recycling of critical minerals. It will also promote research in critical mineral technologies and proposes setting up Centre of Excellence on Critical Minerals. Adopting a whole-of-government approach, the mission will work closely with relevant ministries, PSUs, private companies, and research institutions to achieve its objectives.
The NCMM seeks to develop a holistic action plan through strategic interventions in the form of policy reforms, financial support, infrastructure facilities, human resource development, technological advancements and international cooperation with the aim to build a globally competitive and resilient critical mineral ecosystem for India. The mission has chalked out seven focus areas for doing so.
These include, increasing domestic production of critical minerals, acquisition of critical mineral assets abroad, recycling of critical minerals, trade and markets, fostering self-reliance through scientific research and technological advancement for critical minerals, human resource development and developing effective funding financing and fiscal incentives.
