Centre approves ₹16,300cr mission to explore critical minerals
What's the story
The Indian government has approved a ₹16,300 crore project called the National Critical Minerals Mission (NCMM), to encourage exploration of critical minerals domestically and in offshore areas.
The approval was provided by the Union Cabinet meeting chaired by Prime Minister Narendra Modi.
Information and Broadcasting Minister Ashwini Vaishnaw said the mission's main goal is to reduce India's dependence on imported critical minerals and encourage self-sufficiency.
Comprehensive approach
NCMM to cover all stages of mineral value chain
The NCMM will monitor each stage of the mineral value chain, from exploration and mining to processing and recovery.
The mission seeks to fast-track regulatory approvals for critical mineral mining projects. It also intends to offer financial incentives for exploration and encourage recovery from overburden and tailings.
The initiative urges both public sector enterprises and private firms to acquire overseas critical mineral assets, enhancing trade with resource-rich nations.
Strategic response
Boosting self-reliance in high-tech industries
The NCMM comes as a strategic response to the ongoing global technology war and the competition to secure raw materials necessary for high-tech industries. These include semiconductors, clean energy, defense, and artificial intelligence (AI).
The mission is expected to draw an investment of ₹18,000 crore from public sector undertakings (PSUs) and private sector players.
It will target critical minerals such as lithium, cobalt, nickel, and rare earth elements vital for these industries.
National strategy
NCMM aligns with India's initiative
The NCMM is in line with India's larger 'Atmanirbhar Bharat' push, as relying on imports for these critical resources jeopardizes national security and economic stability.
Recent amendments to the Mines and Minerals (Development and Regulation) Act have eased exploration and mining.
The Geological Survey of India has also launched several exploration projects to identify new mineral deposits.
Future plans
Government plans to establish mineral processing parks
The government has proposed setting up mineral processing parks and research centers for critical mineral technologies. This is expected to promote innovation in the sector.
The 2024-25 Union Budget also removed customs duties on most critical minerals, a move that is likely to make them more accessible in India and encourage industries to establish domestic processing facilities.
Tech impact
Critical minerals crucial for semiconductor, AI industries
Securing a supply chain for critical minerals is key to India's semiconductor and AI industries.
Minerals such as gallium and germanium are critical for semiconductor manufacturing, which goes into various electronic components that form the bedrock of modern computing and AI technologies.
By establishing a strong domestic supply of these minerals, India hopes to cut down on imports, especially from China which currently leads the supply chain for many critical minerals.