Context: The Union Cabinet has approved the establishment of the National Critical Minerals Mission (NCMM) with a budget of Rs 16,300 crore over seven years.
- It will cover all stages of the mineral value chain, from exploration to processing and recovery, with a focus on exploring critical minerals both within India and offshore.
- It will speed up regulatory approvals for mining projects, provide financial incentives for exploration, and encourage the recovery of minerals from waste materials.
- The mission aims to encourage Indian PSUs and private companies to acquire critical mineral assets abroad, enhance trade with resource-rich countries, and develop a stockpile of critical minerals within India.
- The mission includes provisions for setting up mineral processing parks, supporting critical mineral recycling, promoting research in related technologies, and establishing a Centre of Excellence on Critical Minerals.
Efforts to Enhance Critical Mineral Exploration and Processing
- The Mines and Minerals (Development and Regulation) Act, 1957 was amended in 2023 to boost exploration and mining of critical minerals.
- The Geological Survey of India (GSI) has undertaken 368 exploration projects for critical minerals in the past three years, with 195 ongoing in FY 2024-25 and 227 planned for FY 2025-26.
- The Ministry launched the Science and Technology – Promotion of Research and Innovation in Start-ups and MSMEs (S&T PRISM) program in 2023, funding start-ups and MSMEs to bridge the gap between R&D and commercialization.
- Khanij Bidesh India Limited (KABIL), a Joint Venture of the Ministry of Mines, acquired 15,703 hectares in Argentina’s Catamarca province for lithium exploration and mining.
- The Union Budget 2024-25 eliminated customs duties on most critical minerals, promoting their availability and encouraging the establishment of processing facilities in India.
- India became the 14th member of the Mineral Security Partnership (MSP) in June 2023 to bolster critical minerals supply chains to support economic prosperity and climate objectives.
- India has signed agreements with countries like Argentina, Zambia, Australia, and the United States to diversify supply chains and secure access to mineral-rich regions.