India woos foreign investors for big push to critical minerals sector

New Delhi, Apr 30:   Invest India on Tuesday highlighted the huge business opportunity for critical mineral processing in the country to foreign investors with details of fiscal and non-fiscal incentives being offered to push growth in the sunrise sector.

On the second and concluding day of the critical minerals summit, leading mining states such as Odisha and Andhra Pradesh also shared incentives provided by them for industry, underlining the nation's growth trajectory and state-level interventions to foster enabling infrastructure.

Emphasis was placed on a cluster-based approach to promote synergies in mineral extraction, refining, and end-use, particularly in low-carbon technologies.

The Narendra Modi government accelerated the exploration of critical minerals over the last two years as a result of which over 100 critical mineral blocks are now in the pipeline and will be put up for auction to mining companies.

Critical minerals such as lithium, chromium, nickel, graphite, cobalt, titanium, and rare earth elements are essential raw materials for sectors like electronics, electric vehicles, renewable energy, defence, and high-tech telecommunications.

Currently, the extraction of these minerals is dominated by a few countries such as China, which makes the supply chain vulnerable to geopolitical uncertainties.

The discussion at the summit on Tuesday underscored the importance of regulatory certainty, financing frameworks, and ESG standards to attract investors.

The panelists highlighted facilitation services offered by organisations like Invest India and the Industrial Promotion and Investment Corporation of Odisha (IPICOL), facilitating the establishment of processing and beneficiation capabilities in India.

The summit succeeded in bringing together a diverse array of Indian and international stakeholders, including industry leaders, startups, government officials, scientists, academics, and policy experts to help accelerate the domestic production of critical minerals to support India's economic growth.

Veena Kumari Dermal, Joint Secretary in the Ministry of Mines, in her closing remarks emphasised both domestic and international efforts to secure the critical mineral supply chain, enhance skill development in India and focus on critical minerals recycling.

Dermal also highlighted India's available processing technologies for these minerals and referenced amendments to offshore mining regulations.

The summit served as a platform for transformative dialogue and collaboration, setting the stage for further conversations for short-listing the steps required to be taken for India's emergence as a global leader in the critical mineral sector.