Lok Sabha Question No. 878 (UNSTARRED), answered on 2024-02-07
Subject: Securing Minerals Essential for Advanced Technology Sector
Ministry: MINES
Asked by: Pradeep Kumar Singh

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 878

ANSWERED ON 07.02.2024

## SECURING MINERALS ESSENTIAL FOR ADVANCED TECHNOLOGY SECTOR

878. SHRI PRADEEP KUMAR SINGH:

Will the Minister of MINES be pleased to state:

- (a)  whether the Government is planning to bring out a strategy to secure minerals essential for advanced technology sectors; and
- (b) if so, the details of the reforms introduced in the sector?

## ANSWER

## THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

(a)  &  (b):  In  order  to  boost  the  domestic  supply  of  critical  minerals,  the  Central Government has amended the Mines and Minerals (Development and Regulation) Act, 1957 through the MMDR Amendment Act, 2023 with effect from 17.08.2023. Through the said amendment, the Central Government has been empowered to exclusively auction mining lease and composite licence for 24 critical minerals listed in the new Part-D of the First Schedule to the said Act.

The objective of the said amendment is to increase exploration and mining of critical minerals and to ensure self-sufficiency in supply of critical minerals which are essential  for  the  advancement  of  many  sectors,  including  high-tech  electronics, telecommunications, transport and defence. They are also vital to power the transition to a low-emission economy, and the renewable technologies that will be required to meet the 'Net Zero' commitment of India by 2070.

The  auction  of  critical  and  strategic  minerals  brings  several  key  benefits, including  bolstering  domestic  production,  reducing  import  dependency,  promoting sustainable resource management, attracting investments in the mining sector and the development  of key industries crucial for India's industrial and  technological advancement. This is a step towards creating a reliable supply chain of these mineral and  making  an  'AtmaNirbhar  Bharat'  and  contribute  towards  increased  economic growth.

The  Central  Government  has  launched  the  first  tranche  of  e-auction  of  20 mineral blocks of critical and strategic minerals on 29.11.2023 which aims to ensure steady supply of these minerals, thus reducing our reliance on imports and ensuring a more secure and resilient supply chain.

Besides  auction  of  critical  minerals  by  the  Central  Government,  in  order  to further  boost  exploration  of  critical  and  deep-seated  minerals,  a  new  mineral concession namely, exploration licence has been introduced for 29 critical and deepseated minerals. Critical and deep-seated minerals such as Cobalt, Lithium, Nickel, Gold, Silver, Copper are difficult to explore and mine as compared to surfacial or bulk minerals. The exploration licence granted through auction shall permit the licencee to undertake reconnaissance and prospecting operations for critical and deep-seated minerals mentioned in the newly inserted Seventh Schedule to the MMDR Act.

Exploration license aims to create an enabling mechanism wherein the Junior Mining  Companies  will  bring  in  expertise  from  across  the  world  in  acquisition, processing and interpretation of exploration data and leverage the risk-taking ability in discovery of deep-seated mineral deposits through adoption of expertise and latest technologies.

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