Prime Minister Narendra Modi hailed the NCMM as a “major step towards self-reliance” in critical minerals. “The Union Cabinet’s decision on National Critical Minerals Mission will encourage India’s high-tech, clean energy, defence and other key industries,”.
With Rs 3,000 crore budgeted for the National Mineral Exploration Trust (NMET) andRs 4,000 crore for the Geological Survey of India (GSI), the NCMM targets 1,200 domestic critical mineral exploration projects till 2030-31. The Ministry of Mines also aims to auction over 100 critical mineral blocks by then.
A boost in exploration of critical minerals will provide potential investors with key data on reserves, which in turn will increase interest and participation in auctions. Till now, GSI has undertaken 368 exploration projects over the past three years, with 195 projects currently underway, and the mines ministry has auctioned off 24 critical mineral blocks.
Critical Minerals
Critical minerals that are essential for economic development and national security, and the lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations could potentially lead to “supply chain vulnerabilities and even disruption of supplies”. This is true for minerals such as lithium, graphite, cobalt, titanium, and rare earth elements, which are essential for the advancement of many sectors, including high-tech electronics, telecommunications, transport, and defence.
One of the definitions cited in the report characterises a mineral as critical when the risk of supply shortage and associated impact on the economy is (relatively) higher than other raw materials. This definition of a critical mineral was first adopted in the US and the subsequent legislation that resulted from the analysis, the report said. The European Union also carried out a similar exercise and categorised critical minerals on the basis of two prerequisites: supply risk and economic importance.
Under the mission, an additional Rs 5,600 crore is allocated to the NMET to finance risk coverage for foreign sourcing and to support exploration activities outside India.
The mines ministry seeks to amend the Mines and Minerals (Development and Regulation) Act to enable the NMET to fund the proposed activities of the mission.
Announced by Finance Minister Nirmala Sitharaman in last year’s Union Budget, the mission aims to strengthen India’s critical minerals value chain by building a technological, regulatory, and financial ecosystem to ensure mineral availability from both domestic and foreign sources.
The mission is set to boost access to raw materials used across strategic sectors, from clean energy and electronics to defence and agriculture.
NCMM will receive Rs 1,000 crore from the Anusandhan National Research Foundation (ANRF) and other R&D schemes, and Rs 2,600 crore in budgetary support.
In a meeting with officials from the Department of Economic Affairs in November, the mines ministry had proposed external funding for the NCMM through the World Bank’s Resilient and Inclusive Supply-Chain Enhancement (RISE) initiative.
As of February 2024, only $50 million have been pledged as initial contributions to the RISE initiative, with Japan contributing $25 million and the remaining from other countries, including Canada, Germany, Italy, the Republic of Korea, and the UK.
With reference to the management of minor minerals in India, consider the following statements: (2019)
1. Sand is a ‘minor mineral’ according to the prevailing law in the country
2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.
Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
With reference to the management of minor minerals in India, consider the following statements: (2019)
1. Sand is a ‘minor mineral’ according to the prevailing law in the country
2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.
Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
What is/are the purpose/purposes of ‘District Mineral Foundations’ in India?
1. Promoting mineral exploration activities in mineral-rich districts
2. Protecting the interests of the persons affected by mining operations
3. Authorizing State Governments to issue licenses for mineral exploration
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
What is/are the purpose/purposes of ‘District Mineral Foundations’ in India? (2016)
1. Promoting mineral exploration activities in mineral-rich districts
2. Protecting the interests of the persons affected by mining operations
3. Authorizing State Governments to issue licenses for mineral exploration
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3