The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the launch of the National Critical Mineral Mission (NCMM). The Mission seeks to enhance the exploration of critical minerals in India and in its offshore regions while developing a resilient value chain with an investment of ₹34,300 crore over seven years.
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The Union Cabinet has approved the National Critical Mineral Mission with an expenditure of ₹16,300 crore and an expected additional investment of ₹18,000 crore by public sector companies. The mission, under the Ministry of Mines, will be implemented over seven years (FY25-FY31) to enhance domestic critical mineral production, reduce import dependency, and strengthen supply chains.
Critical minerals such as copper, lithium, nickel, cobalt and rare earth are essential raw materials required to fuel the growth of rapidly growing clean energy technologies and their expanding uses ranging from wind turbines and electricity networks to electric vehicles and battery manufacturing. India’s critical mineral imports have surged over the past decade, escalating from US$ 475 million in FY15 to US$ 4.93 billion in FY24.
The government plans to expand exploration and mining activities, with 1,200 exploration projects and the auctioning of over 100 critical mineral resource blocks by FY31. Additionally, the mission will support mapping and exploration of critical mineral assets in resource-rich countries.
“The government will motivate Central PSUs and encourage private sector companies to allocate funds for acquiring critical mineral assets overseas, empowering Central PSUs, their joint ventures, and subsidiaries to invest abroad by issuing necessary guidelines,” said the government.
To boost domestic mining and processing, the government will provide targeted subsidies and establish evacuation infrastructure. A joint venture, KABIL, has already acquired lithium assets in Argentina for exploration and development. The mission will also establish four mineral processing parks to build domestic processing capabilities.
Pilot projects will focus on mineral recovery from sources such as overburden, tailings, fly ash, red mud, and existing mines. The initiative will cover all stages of the value chain, including exploration, mining, beneficiation, processing, and recovery from end-of-life products.
As per the government statement, “Appropriate fiscal measures will be developed to incentivise junior exploration and mining companies by introducing tax credits for investments in critical minerals exploration and development, aimed at reducing the financial burden on companies, and making investments more attractive and feasible.”
The government also aims to encourage Indian PSUs and private companies to acquire critical mineral assets abroad, enhance trade with resource-rich nations, and develop a domestic stockpile of critical minerals.
It is important to note that the Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023 to enhance the exploration and mining of critical minerals. As a result, the Ministry of Mines has auctioned 24 blocks of strategic minerals. Additionally, the Geological Survey of India (GSI) has conducted 368 exploration projects for critical minerals over the past three years, with 195 projects currently underway in FS 2024-25. For FY 2025-26, GSI plans to undertake 227 projects focused on various critical minerals. To promote innovation, the Ministry launched the Science and Technology – Promotion of Research and Innovation in Start-ups and MSMEs (S&T PRISM) program in 2023, providing funding to start-ups and MSMEs to bridge the gap between research, development, and commercialization.
In addition, KABIL (Khanij Bidesh), a joint venture under the Ministry of Mines, has acquired approximately 15,703 hectares in Argentina’s Catamarca province for lithium exploration and mining. Strengthening India’s commitment to securing critical mineral supplies, the government has also removed customs duties on most critical minerals in the Union Budget 2024-25. This policy aims to enhance the availability of critical minerals in the country and encourage the establishment of processing facilities within India.
