The Union Cabinet on Wednesday approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of ₹16,300 crore and an expected investment of ₹18,000 crore by public sector undertakings (PSUs) and other stakeholders. The initiative aims to strengthen India’s self-reliance in the critical mineral sector, a key component of the Atmanirbhar Bharat vision.

Recognizing the essential role of critical minerals in high-tech industries, clean energy, and defense, the government has undertaken several initiatives over the past two years to address sectoral challenges. Finance Minister Nirmala Sitharaman had announced the mission in the Union Budget 2024-25.

The NCMM will cover all stages of the value chain, including exploration, mining, processing, and recycling. It aims to fast-track domestic exploration, streamline regulatory approvals, and provide financial incentives. The mission will also encourage PSUs and private companies to acquire mineral assets abroad, develop a strategic stockpile, and establish mineral processing parks.

Reforms to boost the sector include amendments to the Mines and Minerals (Development and Regulation) Act, 1957, and the auction of 24 strategic mineral blocks. The Geological Survey of India (GSI) has intensified exploration, with 195 ongoing projects in FY 2024-25 and 227 planned for FY 2025-26.

In a bid to foster innovation, the Ministry of Mines launched the Science and Technology – Promotion of Research and Innovation in Startups and MSMEs (S&T PRISM) program in 2023, providing funding to bridge the gap between research and commercialization. Moreover, Khanij Bidesh India Limited (KABIL), a joint venture under the ministry, has acquired 15,703 hectares in Argentina’s Catamarca province for lithium exploration and mining.

The government has also removed customs duties on most critical minerals in the Union Budget 2024-25 to improve domestic availability and encourage local processing.