Union Cabinet Launches 'National Critical Mineral Mission' For Rs 34,300 Crore

The Union Cabinet approved the launch of the National Critical Mineral Mission with a budget of Rs 16,300 crore.

This will be in addition to an expected investment of Rs 18,000 crore by public sector undertakings, according to Union Minister Ashwini Vaishnaw.

The National Critical Mineral Mission aims to create a fast-track regulatory approval process for critical mineral mining projects. Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings, Vaishnaw said.

It is expected to cover all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products. The mission will intensify the exploration of critical minerals within the country and in its offshore areas.

KABIL, a joint venture of the Ministry of Mines, has acquired an area of about 15,703 hectares in the Catamarca province of Argentina for exploration and mining of lithium. 

The mission aims to encourage Indian PSUs and private sector companies to acquire critical mineral assets abroad and enhance trade with resource-rich countries, according to the Union Minister. It additionally proposes the development of a stockpile of critical minerals within the country.

It also includes provisions for the setting up of mineral processing parks and supporting the recycling of critical minerals. It is expected to also promote research in critical mineral technologies and proposes setting up a 'Centre of Excellence' on Critical Minerals.

Adopting a whole-of-government approach, the mission will work closely with relevant ministries, PSUs, private companies, and research institutions to achieve its objectives, Vaishnaw said.

Mines and Minerals (Development and Regulation) Act, 1957, has been amended in 2023 to increase exploration and mining of critical minerals.

Consequently, the Ministry of Mines has auctioned 24 blocks of strategic minerals.

Further, the Geological Survey of India has undertaken 368 exploration projects for critical minerals over the past three years, with 195 projects currently underway in fiscal 2024-25.

Further, for the financial year 2025-26, GSI is going to take up 227 projects for various critical minerals.

The Ministry has also launched the Science and Technology - Promotion of Research and Innovation in Start-ups and MSMEs (S&T PRISM) program in 2023, funding start-ups and MSMEs to bridge the gap between research and development and commercialisation.