The Centre on Wednesday launched ₹16,300-crore National Critical Mineral Mission to enhance the country's self-reliance in critical minerals to support the green energy transition.

The Mission is part of a larger ₹34,300-crore plan over the next seven years that aims to increase the use of essential minerals such as lithium, cobalt and nickel. Of this total, public sector enterprises are expected to contribute ₹18,000 crore to meet the ambitious goals.

Critical minerals, including copper, lithium, nickel, cobalt and rare earth elements, play a vital role in supporting clean energy technologies such as wind turbines, electric vehicles and battery manufacturing.

As global demand for these minerals increases, particularly amid the global shift toward cleaner energy sources, the mission aims to reduce India’s reliance on imports and bolster the country’s domestic mining sector.

Information and broadcasting Minister Ashwini Vaishnaw highlighted that 24 critical minerals have been identified as part of the mission’s scope.

He added that the plan is designed to increase exploration, both domestically and internationally, develop technologies for mineral processing and recycling, and secure critical mineral assets abroad.

A key feature of the initiative is its emphasis on strengthening the entire mineral value chain, from exploration and mining to processing and recovery.

The government’s approach also includes fast-tracking regulatory approvals and offering financial incentives for mineral exploration.

Public and private sector enterprises are encouraged to secure critical mineral assets from resource-rich nations to mitigate the risks associated with global supply chain fluctuations.

Additionally, mineral processing parks, stockpiling critical minerals and a Centre of Excellence for research in critical mineral technologies are part of the plan to boost India’s capabilities in this area.

The initiative promotes a “whole-of-government” strategy to ensure co-ordination among various ministries, public sector enterprises, private firms, and research institutions.

Megha Arora, partner at IndusLaw, said critical minerals were essential to the development of a low-carbon economy, with strategic importance for clean energy technologies, high-tech industries and national security.

She emphasised that the mission could help India become a global leader in the energy transition while supporting sustainable growth.

India’s commitment to boosting critical mineral exploration was further evidenced by amendments to the Mines and Minerals (Development and Regulation) Act in 2023.

This change paved the way for the auction of 24 strategic mineral blocks, providing a boost to domestic mining efforts. In the past three years, the Geological Survey of India (GSI) has undertaken 368 critical mineral exploration projects, with plans to continue expanding these efforts in the coming years.

Ethanol price

The government also approved a price hike for ethanol derived from C-heavy molasses to support the sugar industry. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a 3 per cent increase in the
procurement price of ethanol for the 2024-25 supply year, raising the price to ₹57.97 per litre.