The Union Cabinet has approved the launch of the National Critical Mineral Mission (NCMM) to secure a long-term sustainable supply of critical minerals and strengthen India’s value chains across exploration, mining, processing, and recovery. The mission, initiated on January 29, 2025, will span seven years from 2024-25 to 2030-31, with a proposed expenditure of Rs 16.3 billion and an expected investment of Rs 18 billion from Public Sector Undertakings and other stakeholders.
To reduce dependence on imported lithium, cobalt, and other essential materials for electric vehicle batteries, the government has amended the Mines and Minerals (Development and Regulation) Act, 1957 through the MMDR Amendment Act, 2023, effective August 17, 2023. The amendment introduces a list of 24 critical and strategic minerals in Part D of Schedule-I and removes six minerals from the atomic minerals list in Part B, including lithium, titanium, beryl and beryllium-bearing minerals, niobium, tantalum, and zirconium-bearing minerals. These have now been included in the critical and strategic minerals list.
The amendment also empowers the Central Government under Section 11D to exclusively auction mining leases and composite licenses for these minerals. Additionally, exploration licenses for 29 minerals have been included in Schedule-VII of the Act. The Ministry of Mines has been authorized to auction blocks for exploration licenses under Section 20A, and 24 blocks of critical and strategic minerals have been successfully auctioned in four tranches in 2024.
Exploration efforts have intensified, with the Geological Survey of India undertaking 368 projects focused on critical and strategic minerals over the past three years. In FY 2024-25, 195 projects are underway, and 227 projects have been approved for the next financial year.
To attract foreign investment, 100% FDI is permitted under the automatic route for mining and exploration of metal and non-metal ores. Foreign companies can establish Indian subsidiaries or invest in existing Indian firms to qualify for mining and exploration rights.
In a further boost to the sector, the government has eliminated customs duties on 25 minerals and reduced Basic Customs Duties on two minerals in the Union Budget for 2024-25.
This information was provided by Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma in a written reply in the Lok Sabha.
