Lok Sabha Question No. 2634 (UNSTARRED), answered on 2024-08-07
Subject: Exploration and Processing of Critical Minerals
Ministry: MINES
Asked by: Dr. M K Vishnu Prasad

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2634

ANSWERED ON 07.08.2024

## EXPLORATION AND PROCESSING OF CRITICAL MINERALS

## 2634. DR. M K VISHNU PRASAD:

- Will the Minister of MINES be pleased to state: (a)  whether  it  is  a  fact  that  the  country  relies  heavily  on  imports  for  meeting  its requirement for critical minerals; (b) whether the Government has begun work on a new policy to promote exploration and processing of critical minerals in the country; (c)  whether  the  proposed  new  policy  includes  incentives  at  each  stage  of  the production process; and (d)  if  so,  the  details  thereof  and  other  measures  initiated  by  Government  to  boost
- domestic supply of critical minerals?

## ANSWER

## THE MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a)  Yes Sir.  India  relies  on  imports  to  meet  its  requirement  of  critical  minerals  and imports minerals like lithium, cobalt, nickel, phosphorus, potash etc.

(b) to (d) 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 and strategic minerals listed in the Part-D of the First Schedule to the said Act. Ministry of Mines, Government of India has successfully auctioned 14 blocks of critical and strategic minerals.

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  deep-seated  minerals mentioned in the newly inserted Seventh Schedule to the MMDR Act. The exploration licence granted through auction shall permit the licencee to undertake reconnaissance and prospecting operations for these minerals on receipt of revenue share once mining starts in the explored blocks.

Ministry has given thrust on the enhancement of the exploration program for the critical minerals. Accordingly, during the last three years (2021-22 to 2023-24), GSI had taken up 368 mineral exploration projects on various critical and strategic minerals. During the current FS 2024-25, GSI has taken up 196 mineral exploration projects to assess the mineral potential of various critical and strategic minerals across the country.

Since inception  of  National  Mineral  Exploration  Trust  (NMET),  a  total  393  projects have been funded by NMET. Out of 393 projects, 122 projects are of critical minerals through various exploration agencies.

In order to encourage private participation in exploration, Ministry of Mines has notified 23 private exploration agencies (NPEAs). These agencies are taking up exploration projects through NMET. National Mineral Exploration Trust (NMET) has issued two schemes for partial reimbursement of exploration expenses for holders of Composite Licences and Exploration licences. Under these Schemes, upto 50% of the exploration expenditure incurred by the licence holders are reimbursed.

In  2023,  enlarging  the  scope  of  the  S&T  program  'Promotion  of  Research  and Innovation  in  Start-ups  and  MSMEs  in  mining,  mineral  processing,  metallurgy  and recycling  sector  (S&T-PRISM)'  was  introduced  to  fund  research  and  innovation  in starts up and MSME to bridge the gap between R&D and commercialisation. During 2024, under R&D Component of Science and Technology Programme of Ministry of Mines,  10  R  &  D  Projects  related  to  extraction,  recovery  and  recycling  of  critical minerals  have  been  approved  for  taking  up  through  various  Indian  Institutes  and research laboratories.

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