New Delhi, July 30 In order to boost domestic production and reduce India’s dependence on imported lithium, cobalt and other key materials required for EV batteries, the government has taken several significant steps, including the National Critical Mineral Mission (NCMM) and enhancing the exploration of critical minerals.
The Union Cabinet approved the launch of NCMM for a period of seven years from 2024-25 to 2030-31, with a proposed expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings (PSUs) and other stakeholders.
The exploration of critical minerals has been significantly increased. Over the past three years, the Geological Survey of India (GSI) has undertaken 368 exploration projects focused on critical and strategic minerals. In the FY 2024-25, 195 projects are being executed and 227 projects have been approved for the upcoming financial year, said Minister of State for Heavy Industries, Bhupathiraju Srinivasa Varma, in a written reply in the Lok Sabha.
The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) has been amended through the MMDR Amendment Act, 2023 w.e.f. 17.08.2023. The Amendment Act, 2023 provides for:
According to the government, 100 per cent FDI is allowed under “Automatic” route for mining and exploration of metal and non-metal ores. A foreign company may incorporate an Indian subsidiary company or invest in an existing Indian Company to become eligible for grant of mining and exploration rights.
To further support the critical minerals sector, the government has eliminated customs duties on 25 minerals and reduced Basic Customs Duties (BCD) on 2 minerals in the Union Budget for 2024-25.
India has approximately 7.23 million tonnes (MT) of Rare Earth Elements Oxide (REO) contained in 13.15 MT monazite (a mineral of Thorium and Rare Earths) occurring in the coastal beach, teri and red sand and inland alluvium in parts of Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra, while another 1.29 MT rare earths are situated in hard rocks in parts of Gujarat and Rajasthan.
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