National Critical Mineral Mission Launched by India

The National Critical Mineral Mission (NCMM) was launched by the Government of India to secure the supply of critical minerals. The initiative is part of the broader Atmanirbhar Bharat initiative aimed at achieving self-reliance. The Union Cabinet approved the mission with a budget of Rs. 16,300 crore. It is expected to attract an additional investment of Rs. 18,000 crore from public sector undertakings and other sources. The mission will focus on enhancing the exploration, mining, and processing of critical minerals essential for high-tech industries and clean energy.

Objectives of the National Critical Mineral Mission

The NCMM aims to create a robust framework for self-reliance in critical minerals. It will cover all stages of the mineral value chain. This includes exploration, mining, beneficiation, processing, and recovery from end-of-life products. The mission intends to accelerate the exploration of critical minerals domestically and offshore. A fast-track regulatory approval process for mining projects will be established to streamline operations.

Financial Incentives and Support

The mission will provide financial incentives for critical mineral exploration. It aims to promote the recovery of minerals from overburden and tailings. Indian public sector units (PSUs) and private companies will be encouraged to acquire critical mineral assets abroad. The mission also plans to enhance trade with resource-rich countries.

Development of Infrastructure and Research

The NCMM proposes the establishment of mineral processing parks. These parks will support the recycling of critical minerals. Additionally, the mission will promote research in critical mineral technologies. A Centre of Excellence on Critical Minerals will be set up to encourage innovation and development in this sector.

Legislative and Regulatory Framework

The Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023 to facilitate increased exploration and mining of critical minerals. The Geological Survey of India (GSI) has initiated multiple exploration projects. In the financial year 2024-25, 195 projects are currently underway, with plans for 227 new projects in the following year.

Start-up and MSME Support

The Ministry of Mines launched the Science and Technology
Promotion of Research and Innovation in Start-ups and MSMEs (S&T PRISM) programme. This initiative aims to bridge the gap between research and commercialisation. It provides funding to start-ups and MSMEs engaged in critical mineral research and innovation.

Customs Duty Elimination

In the Union Budget 2024-25, the government eliminated customs duties on most critical minerals. This move is expected to increase the availability of these minerals in India. It will also encourage industries to establish processing facilities within the country.

International Collaboration and Resource Acquisition

KABIL, a joint venture of the Ministry of Mines, has acquired land in Argentina for lithium exploration and mining. This acquisition marks India’s strategy to secure critical mineral supplies through international collaboration.

Questions for UPSC –

1. Discuss the significance of the National Critical Mineral Mission in achieving self-reliance in India.
2. Critically examine the impact of the Mines and Minerals (Development and Regulation) Act amendments on mineral exploration in India.
3. Explain the role of the Geological Survey of India in the context of critical mineral exploration.
4. With suitable examples, discuss the importance of international collaboration in securing critical mineral resources for India.

Answer Hints:

1. Discuss the significance of the National Critical Mineral Mission in achieving self-reliance in India.

1. Part of the Atmanirbhar Bharat initiative, aiming for self-sufficiency in critical minerals.
2. Budget of Rs. 16,300 crore with an expected investment of Rs. 18,000 crore from PSUs.
3. Covers entire value chain – exploration, mining, processing, and recovery from end-of-life products.
4. Fast-track regulatory approval process will streamline mining operations.
5. Encourages domestic production and reduces dependency on imports of critical minerals.

2. Critically examine the impact of the Mines and Minerals (Development and Regulation) Act amendments on mineral exploration in India.

1. Amendments facilitate increased exploration and mining of critical minerals.
2. Streamlined regulatory processes encourage investment and project initiation.
3. 24 blocks of strategic minerals auctioned, indicating a proactive approach.
4. Supports government’s goal of enhancing domestic mineral production.
5. Potential challenges include environmental concerns and local community impacts.

3. Explain the role of the Geological Survey of India in the context of critical mineral exploration.

1. Conducts extensive exploration projects for critical minerals across the country.
2. Currently has 195 projects underway, with plans for 227 new projects in FY 2025-26.
3. Provides essential geological data to support mining and exploration initiatives.
4. Collaborates with other government bodies to enhance resource mapping and utilization.
5. Plays important role in identifying new mineral deposits and assessing their viability.

4. With suitable examples, discuss the importance of international collaboration in securing critical mineral resources for India.

1. KABIL’s acquisition of land in Argentina for lithium exploration exemplifies strategic partnerships.
2. International collaboration helps in accessing resource-rich regions not available domestically.
3. Enhances trade relations with countries rich in critical minerals, boosting supply chains.
4. Facilitates technology transfer and expertise sharing in mineral processing and recovery.
5. Addresses global supply chain vulnerabilities and promotes energy security for India.