New Delhi: The Mines Ministry will soon roll out an incentive scheme to promote domestic processing of lithium and nickel as India seeks to build an integrated critical mineral value chain and reduce dependence on imports, Mines Secretary Keshav Chandra said on Tuesday.
“Very soon, we will be launching our scheme for lithium and nickel,” Chandra said while addressing the 60th Annual General Meeting of the Federation of Indian Mineral Industries (FIMI).
Follow The PSUWatch Channel on WhatsApp
The government has also cleared proposals for setting up critical mineral processing parks in Gujarat, Maharashtra, Odisha and Andhra Pradesh.
Chandra said he had recently reviewed preparations by the four states and was satisfied with the progress.
“All of them are doing a fantastic job. Within a short period, they have identified the sources of minerals, the manner in which they will be processed and the downstream industries that can be developed,” he said.
The proposed parks are expected to bring mineral processing and downstream industries closer together, strengthening domestic supply chains for minerals considered crucial for clean energy, advanced manufacturing and strategic sectors.
Lithium is a key input for lithium-ion batteries used in electric vehicles, consumer electronics and battery energy-storage systems.
Nickel, besides its extensive use in stainless steel, is increasingly important for high-energy-density batteries. Nickel-rich battery chemistries can improve energy density while reducing dependence on cobalt.
Follow PSU Watch on LinkedIN
Separately, Chandra expressed concern over mining blocks that have failed to begin production despite completion of auctions, statutory clearances and execution of mining leases.
Calling the practice “squatting”, he said the government was uncomfortable with companies retaining mining blocks without operationalising them.
“Somebody has secured a mining block, all clearances have been obtained, and the lease has been signed, but operationalisation has still not commenced,” Chandra said.
He urged FIMI members to take the issue seriously, indicating that the government wants auctioned and cleared mineral blocks to move into production rather than remain idle.
The twin focus on domestic processing and faster operationalisation of mineral blocks comes as India seeks to secure supplies of critical minerals required for its expanding electric mobility, renewable energy and advanced manufacturing sectors.
(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)