India has recently launched its National Critical Mineral Mission, which has received cabinet approval and boasts a financial commitment of ₹16,300 crore, complemented by an additional ₹18,000 crore in funding anticipated from various public sector undertakings (PSUs). This initiative aims to lessen the country’s dependence on imports, secure strategic minerals such as lithium from international markets, and enhance domestic exploration efforts.
With a total valuation of ₹34,000 crore, this mission marks the Indian government’s most significant effort to advance greentech and ensure mineral security. International organizations like the World Bank and the Asian Development Bank have also indicated their willingness to collaborate with India in establishing processing facilities and engaging in technology partnerships.
In addition to lithium, the government has identified 23 other critical and strategically important minerals, including vanadium, tungsten, molybdenum, platinum group elements, rare earth elements, and potash. Union Minister for Information and Broadcasting, Ashwini Vaishnaw, stated that the National Critical Mineral Mission will be managed by the Ministry of Mines and is set to run from the fiscal year 2024-25 until 2030-31. Of the ₹16,300 crore allocated for the mission, ₹2,600 crore will come from the budget, with the remaining ₹18,000 crore expected to derive from investments by PSUs.
This mission was initially introduced in the budget announcement in July of the previous year. Reports have indicated that a budgetary allocation of ₹2,600 crore for the mission was requested for FY 2025-26. Discussions surrounding a cabinet proposal for the mission’s financial outlay, estimated between ₹15,000-₹20,000 crore, have also taken place.
The mission will play a crucial role in the mapping and in-depth exploration of mineral resources in countries rich in these critical minerals. Central PSUs and private enterprises are being encouraged to evaluate the option of investing in critical mineral assets abroad, and guidelines for this initiative are currently being developed. Moreover, the government plans to offer targeted subsidies to facilitate mining operations and the construction of essential evacuation infrastructure.
As of now, India is highly reliant on imports for most critical minerals due to the limited availability or absence of these resources within its borders. The projected net import bill for critical minerals (excluding lithium) for FY 2024 is around ₹30,000 crore, with imports of phosphorous being the most significant at approximately ₹12,648 crore. Notably, India has managed to position itself as a net exporter in the realm of rare earth elements.
According to officials from the Mines Ministry, efforts are underway to leverage international funding to bolster this mission, as several institutions have already reached out to the ministry expressing interest in partnership. Initially, the fund is set to allocate ₹4,000 crore for exploration projects by the Geological Survey of India (GSI), approximately ₹8,700 crore from the National Mineral Exploration Trust (NMET) to support exploration activities and the acquisition of mineral blocks abroad, and around ₹1,000 crore from the National Research Fund, along with other centrally sponsored research and development (R&D) schemes aimed at fostering innovation and technology in the sector. Additionally, the aforementioned ₹2,600 crore budget support has also been requested to aid these initiatives.
