The Cabinet approves Rs 34,300 crore for India’s ambitious National Critical Mineral Mission
In a significant move to bolster India’s mineral resources, the Cabinet has approved a hefty investment of Rs 34,300 crore for the National Critical Mineral Mission. The mission, aimed at enhancing the country’s mining capabilities and securing essential minerals, will span a seven-year period until 2030-31, with a focus on both domestic development and international partnerships.
The mission’s core objectives include acquiring critical mineral assets abroad, establishing long-term trade agreements with resource-rich countries, and creating a domestic stockpile to safeguard against global shortages. The Indian government aims to ensure that the nation remains competitive in the global market for vital minerals used in industries ranging from technology to energy production.
Under the plan, the Ministry of Mines will lead the mission, with a direct budgetary allocation of Rs 16,300 crore, which includes Rs 2,600 crore in government support. An additional Rs 18,000 crore is expected from public sector undertakings (PSUs) as part of the investment to ensure the mission’s success. This funding will cover the entire value chain, including exploration, mining, beneficiation, and processing of critical minerals.
In a related move, the Geological Survey of India (GSI) has been tasked with re-exploring the lithium reserve in Jammu and Kashmir’s Reasi district. The region holds a potential 5.9 million tonnes of lithium, a key resource in the production of batteries, but has faced setbacks in its development due to various challenges. The re-exploration aims to bring the reserve closer to auctioning, ensuring that India can tap into its vast mineral wealth.
As part of the initiative, the government is also planning to fast-track approval processes for mineral exploration and mining projects, simplifying the approval routes for both private and public sector companies. This will make it easier to tap into India’s domestic resources while expanding its international mineral partnerships.
India’s focus on critical minerals, including lithium, cobalt, and rare earth elements, comes at a time when global demand for these resources is surging due to the rapid growth of electric vehicles and renewable energy sectors. By investing heavily in securing these materials, the government hopes to position India as a key player in the future global economy, lessening the country’s dependence on external sources.
This strategic move is set to enhance India’s energy security, support the green energy transition, and create new job opportunities in the mining and technology sectors. If successful, the National Critical Mineral Mission could pave the way for India to become a global leader in mineral resource management, driving both economic growth and technological innovation for the future.
