Cabinet clears National Critical Mineral Mission with ₹16,300 crore outlay

The Union Cabinet, chaired by Prime Minister Narendra Modi, 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 entities.

“Several key decisions have been made to create new opportunities for our youth, future generations, and the economy through science and technology. In this regard, PM Modi has approved the National Critical Minerals Mission today,” Information and Broadcasting Minister Ashwini Vaishnaw said at a Cabinet briefing.

The establishment of NCMM was first announced by Finance Minister Nirmala Sitharaman in the Union Budget for 2024-25 on July 23, 2024.

The initiative, part of the Atmanirbhar Bharat mission, aims to ensure India's self-reliance in the critical mineral sector, recognising its vital role in high-tech industries, clean energy, and defence.

The Mission will cover all aspects of the critical mineral value chain, including exploration, mining, beneficiation, processing, and recovery from end-of-life products. It seeks to fast-track regulatory approvals for mining projects, offer financial incentives for exploration, and promote mineral recovery from overburdens and tailings.

A key focus of the mission is to encourage Indian PSUs and private companies to acquire critical mineral assets abroad and enhance trade partnerships with resource-rich nations. It also proposes to develop a national stockpile of critical minerals to ensure supply security.

The Mission will support the establishment of mineral processing parks and the recycling of critical minerals.

Research and development in critical mineral technologies will be promoted through the creation of a Centre of Excellence on Critical Minerals.

24 critical minerals

India has identified 24 critical minerals: Beryl, Cadmium bearing minerals, Cobalt bearing minerals, Gallium bearing minerals, Glauconite, Graphite, Indium bearing minerals, Lithium bearing minerals, Molybdenum bearing minerals, Nickel bearing minerals, Niobium bearing minerals, Phosphate (without uranium), Platinum group of elements bearing minerals, Potash, Rare earth minerals (excluding Uranium and Thorium), Rhenium bearing minerals, Selenium bearing minerals, Tantalum bearing minerals, Tellurium bearing minerals, Tin bearing minerals, Titanium bearing minerals and ores (ilmenite, rutile, leucoxene), Tungsten bearing minerals, Vanadium bearing minerals, Zirconium bearing minerals and ores (including zircon).

The Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023 to facilitate increased exploration and mining of critical minerals. Following this, the Ministry of Mines auctioned 24 blocks of strategic minerals.

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

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

The government has eliminated customs duties on most critical minerals in the Union Budget 2024-25 to increase the availability of critical mineral and encourage the industry to set up processing facilities in India.