Description

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Context:

The National Critical Mineral Mission aims to promote the exploration of essential minerals, reduce import dependence, and ensure self-reliance in India.

Under: Ministry of Mines

Published in: Union budget 2024-25 Budget: 34 300 GBP (16,300 GBP crore from government + 18,000 GBP crore from dog and private sector)

About National Critical Mineral Mission (NCMM)

Aspect	Details
Objective	Reduce India's dependence on the import of critical minerals and ensure self-sufficiency in high-tech industry, clean energy, and national defense.
Coverage	Includes all phases: minerals, mining, beneficiation, processing, and recovery from end-of-life products.
Exploration	Focuses on identifying critical minerals in India and its offshore areas.
Access & Collaboration	Adopts a "whole-of-government" approach, working closely with ministries, PSUs, private companies, and research institutions.
Approval Process	Implements a rapid approval mechanism to fast-track mining projects for critical minerals.
Mineral Storage	Ensures sufficient reserves to meet future demands for critical minerals.
International Strategies	Encourages Indian companies to acquire mineral assets abroad and establish business partnerships with resource-rich nations.
Infrastructure & Processing	Supports domestic processing of minerals, promotes recycling, and advances research through the establishment of a Center for Critical Minerals.
Industry Support	Offers financial incentives to industries for setting up processing units in India.
Innovation & MSME Support	Expand funding support for startups, individuals, and MSMEs in the critical mineral sector through initiatives like PRISM (Promoting Innovations in Individuals, Startups, and MSMEs).

Some minerals cover under NCMM

Mineral Name	Industry Used In
Lithium & Cobalt	EV batteries, electronics
Graphite & Nickel	Battery storage, alloys
Rare Earth Elements (REEs)	High-tech manufacturing, defense applications
Titanium & Tungsten	Aerospace, industrial applications
Vanadium & Molybdenum	Steel production, energy storage solutions

Need for NCMM

Increase India's independence and reduce imports.
It controls economic growth and allows the transition of pure energy.

About Critical Minerals

Minerals that are necessary for economic development and national security (As per Ministry of Mines). Their lack of availability or concentration of extraction or processing at several geographical sites can lead to the vulnerability and disturbance of the supplier chain. The Central government has published a list of 30 critical minerals for India, including cobalt, copper, Germania, lithia, tungsten, etc.

Significance of Critical Minerals

Critical minerals such as copper, lithium, nickel, cobalt, and rare soil elements are essential raw materials for modern industry.

Applications

Infrastructure of renewable energy: wind turbines, solar panels, and electric networks. Electric vehicles (EV): battery and charging infrastructure.
Electronics and high-tech Industry: smartphones, defense equipment, and medical devices.

Since the world is moving to clean energy, the demand for these minerals is increasing, so their domestic availability is necessary for the long-term economic and technological safety of India.

Key implementation measures

Accelerated mining approval: The mission will introduce a rapid regulatory process for mineral mining projects.
Strategic offer of critical minerals will be created to protect Indian supplier chains.
In 2023, miners and minerals from 1957 were altered, allowing 24 strategic mineral blocks to be auctioned.
Projects of Geological Survey India (GSI): Over the past three years, GSI has launched 368 mineral survey projects, with 227 projects planned for 2025-26.
Exceptions to import: The government removed customs duties on several critical minerals in the FY25 budget to support home processing and production.

Challenges

Geopolitical Risks: Obtaining overseas mineral assets can be influenced by global political dynamics.
Environmental concerns: Increased mining activities must balance environmental protection.
Investment risks: The participation of the private sector requires strong policy support.

India's Critical Minerals and Policy Developments

Category	Details
List of Critical Minerals	India identified 30 critical minerals, including antimony, beryllium, bismuth, cobalt, copper, gallium, germanium, graphite, hafnium, indium, lithium, molybdenum, niobium, nickel, phosphorus, zirconium, selenium, and cadmium.
Legislative Changes	The Mines and Minerals (Development and Regulation) Act, 1957 was amended in 2023 to streamline critical mineral surveying. This led to the auction of 24 strategic mineral blocks.
Coastal Mineral Auctions	The 2023 amendment to the Offshore Areas Mineral (Development and Regulation) Act, 2002 (OAMDR) introduced a transparent auction process for coastal minerals and integrated licenses for exploration and production.
Survey Projects	The Geological Survey of India (GSI) completed 368 critical mineral projects, with 195 projects in 2024-25 and 227 projects planned for 2025-26.
Removal of Customs Liabilities	The FY25 Union Budget eliminated customs duties on critical minerals to support domestic production and processing facilities.
International Cooperation	Khanij Bidesh India Ltd (KABIL) secured 15,703 hectares in Catamarca, Argentina, for lithium exploration and mining.

Conclusion

NCMM is an initiative of milestones aimed at reducing imports on imports, strengthening the ability of domestic mining, and ensuring the future of pure energy in India. India by integrating survey, processing, recycling, and international cooperation takes a strategic step towards independence and global leadership in critical mineral suppliers.

Source:

The Hindu

PRACTICE QUESTION

Q.Critically analyze the significance of the National Critical Mineral Mission (NCMM) in addressing India's mineral resource needs for its industrial growth and energy transition. Discuss the challenges associated with the implementation of the mission and suggest measures to overcome them. (250 words)