Budget 2024: Govt announces National Critical Minerals Mission, waives off BCD on 25 minerals

New Delhi: A day after the economic survey sounded a warning about how a phase-down of coal may mean an increase in India’s critical mineral imports, the government has announced the setting up of a National Critical Minerals Mission (NCMM) in Union Budget 20224-25. The mission will focus on enhancing domestic production of critical minerals, recycling and overseas acquisition of critical mineral assets, said Finance Minister Nirmala Sitharaman in her Budget speech on Tuesday.

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“We will set up a Critical Minerals Mission for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets. Its mandate will include technology development, skilled workforce, extended producer responsibility framework, and a suitable financing mechanism,” the Finance Minister said.

Govt to launch auction of 1st tranche of offshore critical mineral blocks

The Finance Minister also said that the government will launch the first tranche of offshore critical mineral blocks for mining, an initiative which is part of the 100-day announcements planned by the Ministry of Mines for the third term of the Modi government. “Our government will launch the auction of the first tranche of offshore blocks for mining, building on the exploration already carried out,” said Sitharaman.

Govt exempts 25 critical minerals from custom duty

Noting that minerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics, the Finance Minister said that the government will exempt 25 critical minerals from custom duty fully, and reduce the same for two critical minerals. “I propose to fully exempt customs duties on 25 critical minerals and reduce BCD on two of them. This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors,” said Sitharaman.

The list of 25 critical minerals exempted from Basic Customs Duty (BCD) includes Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, Potash, REE, Rhenium, Strontium, Tantalum, Tellurium, Tin, Tungsten, Vanadium, Zirconium, Selenium, Cadmium, Silicon other than Quartz and Silicon Dioxide. In addition, BCD has been reduced from 7.5 or 5 percent to 2.5 percent for Graphite, Silicon Quartz and Silicon Dioxide.

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