Unpacking the National Critical Minerals Mission: A Strategic Initiative for India

The National Critical Minerals Mission: A Step Towards Sustainability

The introduction of the National Critical Minerals Mission is poised to revolutionize the entire supply chain of critical minerals in India. This initiative is designed to align with the vision of an Atmanirbhar Bharat (Self-reliant India), ensuring that the country can harness its own resources effectively. The mission is crucial in achieving clean energy goals while minimizing dependency on imports.

Mission Objectives

• Supply Chain Management: The mission focuses on refining the supply chain of critical minerals, encompassing domestic production, recycling, and distribution.
• Atmanirbhar Bharat Vision: It aligns with the national objective of self-reliance, aiming to decrease reliance on foreign imports for critical minerals.

Offshore Mineral Blocks Auction

• First Tranche Auction: Out of the 10 offshore mineral blocks, seven will focus on poly-metallic nodules and crusts found in the Andaman Sea, while three lime mud blocks will be situated off the coast of Gujarat.
• Key Minerals: These blocks are rich in vital minerals such as cobalt and nickel, which are essential for the production of low-carbon technologies that generate, store, and transmit clean energy.
• Location: All blocks are located within India’s Exclusive Economic Zone (EEZ).
• Composite Licences: Licences will be issued for determining the quantity of mineral resources, exploration, commercial production, and auction-based off-take.

Significance of Offshore Mineral Resources

• Economic Growth: Exploring offshore mineral resources is expected to enhance India’s capabilities in the mineral sector, fostering new opportunities.
• Clean Energy Support: Access to cobalt and nickel is crucial for supporting clean energy developments and steel manufacturing.

Budget Provisions

• Enhanced Allocations: The budget has increased funding for the Geological Survey of India (GSI), Indian Bureau of Mines (IBM), and the National Mineral Exploration Trust (NMET).
• Geoscience Data Collection: A ₹1,300-crore allocation for GSI aims to bolster geoscience data collection and strategic planning.
• Regulatory Efficiency: A ₹135-crore allocation for IBM will enhance regulatory measures and ensure environmental protection.
• Mineral Exploration: A ₹400-crore allocation for NMET is designated to expedite mineral exploration and support start-ups and MSMEs.

Economic Incentives

• Customs Duty Waiver: A waiver of Customs Duty has been announced on 25 critical minerals and blister copper, along with reductions in duties for two additional minerals.
• Cost Reduction: The removal of import duties is expected to lower industry costs, attract investments in processing and refining, and bolster the growth of downstream industries.
• Import Reliance and Supply Risks: Reducing reliance on imports will protect India from global supply chain vulnerabilities.
• Copper Supply Chain: Implementing zero import duty on blister copper will stabilize the supply chain for copper refiners, essential for sectors such as electronics and construction.

The National Critical Minerals Mission represents a pivotal strategy to secure India’s mineral resources, bolster clean energy technologies, and foster economic growth through sustainable and efficient mining practices.