Govt launches Rs 16,300 Cr critical mineral mission

New Delhi, Jul 29: The Union Cabinet has approved the launch of the National Critical Mineral Mission (NCMM) to secure the long-term supply of key minerals like lithium and cobalt, essential for electric vehicle batteries and clean energy technologies. The mission will run for seven years (2024-25 to 2030-31) with a budget outlay of Rs16,300 crore and an expected investment of Rs 18,000 crore from PSUs and private stakeholders.

The government has amended the Mines and Minerals (Development and Regulation) Act, 1957, to include 24 strategic minerals and granted itself exclusive rights to auction mining leases for these resources. So far, 24 mineral blocks have been auctioned in four tranches in 2024.

Exploration efforts have intensified, with the Geological Survey of India (GSI) taking up 368 critical mineral projects in the last three years. For 2024-25, 195 projects are underway, and 227 have been approved for the next year. To attract foreign investment, 100% FDI is allowed under the automatic route, and customs duties on 25 critical minerals have been removed. Minister of State made the announcement for Heavy Industries Bhupathiraju Srinivasa Varma in Parliament.