• India
  • Jan 30

What is National Critical Minerals Mission?

• The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch of the National Critical Mineral Mission (NCMM) with a total outlay of Rs 34,300 crore spread over seven years.

• The public sector enterprises are expected to contribute Rs 18,000 crore to the mission which aims at promoting exploration of critical minerals within the country and at offshore locations.

What are critical minerals?

• One definition suggests that a mineral is labelled as critical when the risk of supply shortage and associated impact on the economy is higher than the other raw materials. 

• They are metals, non-metals and minerals that are considered vital for the economic well-being of the world’s major and emerging economies, yet whose supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors.

• Critical minerals are essential for economic development and national security. The lack of availability of these minerals or even concentration of existence, extraction or processing of these minerals in few geographical locations may lead to supply chain vulnerability and disruption.

• The future global economy will be underpinned by technologies that depend on minerals such as lithium, graphite, cobalt, titanium, and rare earth elements (REE). 

• Each country has its own classification of raw materials or critical minerals depending on levels of economic development, industry requirements, national interests and security concerns, technology, market changes and natural resource endowment. 

• The most common framework widely adopted for evaluating material criticality is based on a metal’s supply risk and the impact of a supply restriction. 

• Critical minerals include rare earth elements (REEs) and platinum-group elements.

Highlights of National Critical Minerals Mission (NCMM):

• There is a need to establish an effective framework for India’s self-reliance in the critical mineral sector. 

• In line with this vision, Finance Minister Nirmala Sitharaman announced the setting up of the Critical Mineral Mission in the Union Budget for 2024-25.

• The NCMM will encompass all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products.

• The mission will intensify the exploration of critical minerals within the country and in its offshore areas.

• It aims to create a fast-track regulatory approval process for critical mineral mining projects. 

• Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these resources from overburden and tailings.

• The mission aims to encourage Indian public sector enterprises and private sector companies to acquire critical mineral assets abroad and enhance trade with resource-rich countries. 

• It also proposes development of a stockpile of critical minerals within the country.

• The mission includes provisions for setting up of mineral processing parks and supporting the recycling of critical minerals. It will also promote research in critical mineral technologies and proposes setting up a Centre of Excellence on Critical Minerals.

• Adopting a whole-of-government approach, the mission will work closely with relevant ministries, PSUs, private companies, and research institutions to achieve its objectives.

Govt’s initiatives in critical minerals sector

• The government of India has undertaken several initiatives over the past two years to address challenges in the critical minerals sector.

• In a bid to augment the exploration and mining of critical minerals, the government had in 2023 amended the Mines and Minerals (Development and Regulation) Act, 1957. Consequently, 24 blocks of strategic minerals were auctioned.

• Further, Geological Survey of India (GSI) has undertaken 368 exploration projects for critical minerals over the past three years, with 195 projects currently underway in 2024-25.

• In 2025-26, GSI will take up 227 projects for various critical minerals.

• The Centre has already eliminated customs duties on a majority of critical minerals in the FY25 budget to increase the availability of critical minerals in the country and encourage the industry to set up processing facilities in India.

• These initiatives highlight the country’s commitment to secure the supply of critical minerals.

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