What does fineprint of India’s National Critical Mineral Mission (NCMM) say?

New Delhi: India has unveiled an ambitious and comprehensive National Critical Mineral Mission (NCMM) on Wednesday under which it plans to bolster critical mineral supplies for India’s green industries through domestic production and acquisition of overseas assets. According to the fineprint of the mission document, India plans to undertake 1,200 exploration projects, auction more than 100 critical mineral mines, acquire at least 50 critical mineral assets abroad and set up four mineral processing parks in the next five years. With 2030-31 as the horizon for implementation, the National Critical Mineral Mission aims to ensure the domestic production of at least 15 critical and strategic minerals (such as graphite, lithium, potash, rare earth elements), meet at least 10 percent of the national annual demand for critical minerals by 2031 through domestic production and 5 percent of the demand through overseas mining assets, the fineprint of the mission document reveals.

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To boost domestic production of critical minerals, the government, apart from undertaking exploration aggressively and auctioning critical mineral blocks, will fast-track the regulatory process. The government will also form an Empowered Committee, including Secretaries from 14 ministries and departments, Niti Aayog CEO, Deputy National Security Advisor and others to monitor the implementation of the mission. This committee will be chaired by the Cabinet Secretary.

PSUs to play key role in acquisition of critical mineral assets abroad

Both Central and state PSUs are set to play a key role in the acquisition of critical mineral assets abroad, with the government saying that it will “motivate Central PSUs” and “encourage private sector companies” to allocate funds for the same. According to the mission document, Indian companies and private sector companies will secure at least 50 overseas mining assets to meet 5 percent of annual critical mineral demand by 2031. “The Government of India will facilitate central PSUs in leading asset acquisitions in association with private companies contributing capital and sharing revenue,” said the document.

The NMET is expected to spend Rs 1,600 crore up to FY2030-31 to support critical mineral exploration activities outside India. “The Empowered Committee will give broad directions and inter-ministerial support to PSUs and stakeholders to acquire critical mineral assets abroad… It is expected that PSUs and other companies will invest around Rs 2,500 crores per year in critical mineral assets abroad which will cumulatively lead to an investment of around Rs 18,000 crore by FY2030-31,” says the fineprint of the mission document. This, in addition to Rs 16,300 crore which will come from the National Mineral Exploration Trust (NMET) and the Geological Survey of India (GSI) and budgetary support offered by the Centre, will take the total financial outlay of the mission to Rs 34,300 crore.

India to enter into Critical Minerals Partnership Agreements with countries

To enhance trade with resource-endowed countries, the government shall aim to enter into Critical Minerals Partnership Agreements with them. The government will also work to include Critical Minerals chapters in existing bilateral/Free Trade agreements with countries of interest. “Government has already eliminated import duty on critical minerals, and import duties and other barriers on recyclable materials such as scrap, black mass, and e-waste shall also be reviewed,” said the fineprint.

Govt to allocate Rs 500 crore for setting up critical mineral processing hubs

Since India does not possess technologies to process critical minerals, the government plans to create an ecosystem for the same by setting up four critical mineral processing hubs. “A scheme will be prepared by the Ministry of Mines in consultation with the Ministry of Finance. Efforts will be made to utilise existing industrial parks, if available. The government aims to allocate Rs 500 crore by FY2030-31 to support such parks,” said the mission document.

Govt to allocate Rs 4,000 cr for providing subsidies for evacuation infra

With the aim of increasing supply of critical minerals from overseas assets to India, the government has said that it will also unveil guidelines and will provide targeted subsidies for mining and the establishment of evacuation infrastructure. “Subsidies can lower the risk in investment made for mine development and resource retrieval. The government will allocate Rs 4,000 crore for such projects up to FY2030-31 from NMET,” said the fineprint.

Rs 1,500-cr incentive scheme for recycling of critical minerals

The government also plans to issue separate guidelines/SOPs for recycling of critical minerals to streamline the informal mineral recycling sector in the country. In addition, there are also plans to introduce an incentive scheme for setting up minerals recycling under the National Critical Mineral Mission. The quantum of incentives for the scheme is pegged at Rs 1,500 crore. The mission has also proposed the formation of a recycling advisory group to assess the presence of different critical minerals in domestic and imported products and suggest necessary measures for optimum recovery of critical minerals from these products.

Apart from recycling, the NCMM seeks to promote the recovery of critical minerals from from various sources such as, overburden, tailings, fly ash, red mud, existing mines etc. Moreover, as several critical minerals are associated with major minerals, the government will design a lower revenue share for critical minerals associated with major minerals. To promote the ecosystem, the government will allocate Rs 100 crores during the Mission period for setting up pilot projects for mineral recovery through novel methods by encouraging collaborations between industry, academia and research institutions.

Central PSUs to form JV to develop National Critical Mineral Stockpile/Reserves

Additionally, a joint initiative between central PSUs shall be institutionalised to develop a National Critical Mineral Stockpile/Reserves Programme for at least five critical minerals by 2030-31 to guard against supply disruptions and aid mineral supply for domestic utilisation. To develop the National Critical Minerals Stockpile/Reserves, the government will allocate Rs 500 crore during the mission period for this purpose.

The government plans to allocate Rs 500 crore for promoting research and development (R&D) in critical minerals within the country and another Rs 500 crore for global collaborations to leverage existing technical advancements made by many countries and companies.

The government will also periodically refine the criticality assessment framework based on supply risk and economic importance and accordingly update the list of critical minerals for India.

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