The Union Cabinet approved the National Critical Mineral Mission (NCMM) on January 29, 2025, with a budget allocation of Rs 163 billion for seven years, spanning from FY 2024-25 to 2030-31. The initiative focuses on ensuring a sustainable supply of critical minerals and strengthening India’s critical mineral value chains, covering exploration, mining, beneficiation, processing, and recovery from end-of-life products.

A key aspect of the mission is the promotion of advanced technologies to recover critical minerals from industrial waste such as tailings, overburden, fly ash, and red mud. To support this, the government has allocated Rs 1 billion for pilot projects aimed at developing novel mineral recovery methods. These projects will be implemented through collaborations between industry, academia, and research institutions.

Additionally, the mission emphasizes research and development (R&D) in mining and metallurgy. The Ministry of Mines has been actively fostering innovation by funding startups, MSMEs, and individual innovators through the Science & Technology-Promotion of Research and Innovation in Start-ups and MSMEs (S&T-PRISM) initiative. This support aims to facilitate the development of indigenous technologies for processing and extracting critical minerals.

As part of the Union Budget 2025-26, the government has eliminated customs duty on waste and scrap of critical minerals. This measure is expected to enhance the recycling sector by reducing costs for secondary producers, creating a competitive environment for Indian businesses against international counterparts, and boosting exports of secondary and downstream products.

The NCMM also includes a provision of Rs 15 billion to incentivise the establishment of recycling facilities. These incentives aim to expand domestic recycling capabilities and reduce dependency on imported raw materials, reinforcing India’s position in the global critical minerals market.

News source: PIB