The Union government has approved the National Critical Minerals Mission (NCMM) to reduce India’s reliance on imports of critical minerals, which are essential for clean energy technologies and modern industries.
About the National Critical Minerals Mission (NCMM)
- The mission, with a total outlay of ₹34,300 crore over seven years, aims to:
- Enhance domestic exploration and processing of critical minerals.
- Reduce import dependence.
- Accelerate India’s transition to green energy technologies.
Objectives and Key Features
1.Enhancing Domestic Exploration:
- Significant funds will be allocated to intensify mineral exploration across India and offshore areas.
2.Reducing Import Dependence:
- India currently relies heavily on imports for critical minerals like lithium, cobalt, nickel, and rare earth elements, which are vital for electric vehicles (EVs), battery manufacturing, and renewable energy technologies.
3.Developing Processing and Recycling Capabilities:
- The mission will promote investment in mineral processing parks, recycling technologies, and sustainable extraction methods.
- Overseas Mineral Acquisitions:
- Public and private sector entities will be encouraged to acquire mineral assets abroad to ensure a steady supply.
- Regulatory and Financial Support:
- Streamlined approvals and financial incentives will be provided to boost exploration and development.
Significance of Critical Minerals
- Critical minerals such as copper, lithium, nickel, cobalt, and rare earth elementsare indispensable for:
- Renewable Energy Infrastructure:Wind turbines, solar panels, and electricity networks.
- Electric Vehicles (EVs):Batteries and charging infrastructure.
- High-Tech Industries:Smartphones, defense equipment, and medical devices.
- With the global shift towards clean energy, securing these minerals is crucial for India’s economic and technological security.
Government Strategy and Implementation
- The Union Cabinet has approved ₹16,300 crorein government expenditure, with an additional ₹18,000 croreexpected from public and private sector investments.
- Key Measures:
- Expedited Mining Approvals:Fast-track regulatory processes for mining projects.
- Stockpile Development:Building strategic reserves of critical minerals.
- Policy Reforms:Amendments to the Mines and Minerals (Development and Regulation) Act, 1957, enabling the auction of 24 strategic mineral blocks.
- Geological Survey of India (GSI) Projects:Over 368 exploration projectsinitiated in the past three years, with 227 planned for 2025-26.
- Import Duty Waivers:Customs duties on critical minerals removed in the FY25 budgetto boost domestic processing.
Impact on India’s Energy Transition
- The NCMM is expected to:
- Secure mineral supply chains for clean energy technologies.
- Boost domestic manufacturing of EV batteriesand renewable energy components.
- Strengthen India’s position in the global critical minerals market.
- Attract foreign and private investment in mining and processing.