New Delhi– In a major push to reduce dependence on imports of lithium, cobalt, and other essential materials used in electric vehicle (EV) batteries, the Indian government has ramped up domestic initiatives, including the launch of the National Critical Mineral Mission (NCMM) and increased exploration efforts.
The Union Cabinet has approved the NCMM for a seven-year period from 2024–25 to 2030–31. The mission includes a planned expenditure of Rs 16,300 crore and anticipates investments totaling Rs 18,000 crore from Public Sector Undertakings (PSUs) and private stakeholders.
The government has also significantly scaled up its mineral exploration efforts. Over the past three years, the Geological Survey of India (GSI) has conducted 368 projects focused on critical and strategic minerals. For fiscal year 2024–25, 195 projects are currently underway, and another 227 have been approved for the following year, according to Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma in a written reply to the Lok Sabha.
The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), was amended via the MMDR Amendment Act, 2023, effective August 17, 2023. The amendments facilitate key reforms in mining and exploration rights.
To attract foreign investment, the government allows 100% Foreign Direct Investment (FDI) under the “automatic” route for mining and exploration of metal and non-metal ores. Foreign companies can establish Indian subsidiaries or invest in existing firms to qualify for mining and exploration rights.
In the Union Budget for 2024–25, customs duties on 25 minerals were eliminated, and Basic Customs Duties (BCD) were reduced on two more, to further support the critical minerals sector.
India is estimated to have about 7.23 million tonnes (MT) of rare earth oxide (REO) contained in 13.15 MT of monazite—a mineral rich in thorium and rare earths—found in coastal sands, red sand, and inland alluvium across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. An additional 1.29 MT of rare earths are located in hard rock deposits in Gujarat and Rajasthan. (Source: IANS)
