Lok Sabha Question No. 1425 (UNSTARRED), answered on 2024-12-04
Subject: National Policy on Critical Minerals
Ministry: MINES
Asked by: Shri Manickam Tagore B, Shri Vijayakumar Alias Vijay Vasanth

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 1425

ANSWERED ON 04.12.2024

## NATIONAL POLICY ON CRITICAL MINERALS

1425  SHRI MANICKAM TAGORE B:

SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH:

Will the Minister of MINES be pleased to state:

- (a) the specific steps the Government is taking to formalize and prioritize its list of critical minerals to better align with national economic and security needs;
- (b) manner in which the Government plans to address the policy gaps in its National Mission on Critical Minerals particularly in relation to tax incentives, Foreign Direct Investment (FDI) reforms and the establishment of strategic reserves;
- (c)  the  details  of  strategies  being  considered  to  enhance  domestic  mining  and processing capabilities and the manner in which the Government proposes to attract foreign investment and technology transfers to support these efforts;
- (d) the manner in which India's participation in international collaborations such as the U.S.-  led  Mineral  Security  Partnership  (MSP)  influence  its  ability  to  secure  critical mineral supplies and reduce dependency on specific countries like China; and
- (e) the details of measures being proposed to integrate innovation and sustainability into India's critical  minerals  strategy  including  research  in  sustainable  mining practices, recycling technologies and environmental regulations?

## ANSWER

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

- (a) The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) has been amended through the MMDR Amendment Act, 2023 w.e.f 17.08.2023. The Amendment Act, 2023 provides for:
- i)  A list of critical and strategic minerals in Part D of Schedule-I.
- ii) Omission of six minerals from the list of 12 atomic minerals in Part B of Schedule-I namely Lithium, Titanium, Beryl and beryllium bearing minerals, Niobium, Tantalum and Zirconium bearing minerals and their inclusion in the list of 24 critical & strategic minerals.
- iii) Section 11D of the Act, which empowers Central Government to exclusively auction mining lease and composite licence for critical & strategic minerals specified in Part D of the Schedule-I.

iv) Exploration licence for 29 minerals included in Schedule-VII of the Act.

In  Addition,  Ministry  of  Mines  has  been  empowered  to  auction  blocks  for  grant  of Exploration  Licence  through  an  order  dated  21st  Oct  2024  under  section  20A  of MMDR Act 1957.

(b) and (c) Union Finance Minister in the Union Budget 2024-25 has announced the setting up of a Critical Mineral Mission for domestic production, recycling of critical minerals and overseas acquisition of critical mineral assets on 23 rd  July, 2024.

In  order  to  enhance  the  domestic  mining  and  processing  capabilities  and  attract foreign investment and technology transfer, Ministry of Mines is taking a multipronged approach, as following:

- i. To  enhance  the  exploration  program  for  identifying  potential  mining  sites  in order to boost domestic production for the critical and strategic minerals, Geological Survey of India (GSI), in current year 2024-25, has taken up 195 mineral exploration projects for critical and strategic minerals across the country.
- ii. Ministry  has  also  focused  on  funding  various  projects  of  mining  exploration through National Mineral Exploration Trust (NMET). So far, NMET has funded 139 projects of critical minerals through various exploration agencies.
- iii. To encourage private participation in exploration, Ministry of Mines has notified 28  private  exploration  agencies  (NPEAs).  These  agencies  are  taking  up exploration projects through funding from NMET.
- iv. Central Government has auctioned 24 blocks for critical and strategic minerals.
- v. Further, 100% FDI is allowed under 'Automatic' route for mining and exploration of metal and non-metal ores. A foreign company may incorporate an Indian subsidiary company or invest in an existing Indian company to become eligible for grant of mining and exploration rights.
- vi. To support the critical minerals sector, Government has eliminated customs duties on 25 minerals and reduced Basic Customs Duties (BCD) on 2 minerals.
- vii. Ministry of Mines is engaged in various multilateral and bilateral platforms for strengthening the critical minerals value chain, focusing on multiple objectives, including  the  processing  and  recycling  of  critical  minerals  such  as  Minerals Security Partnership (MSP) and the Indo-Pacific Economic Framework (IPEF), initiative on Critical and Emerging Technologies (iCET) and others.

(d) The Ministry of Mines has also entered into bilateral agreements with the resource rich countries and multilateral platforms like MSP, IPEF to secure critical minerals and access  to  the  latest  technologies  in  the  exploration  and  development  of  critical minerals.

Further, KABIL, a JV of Ministry of Mines, has acquired an area of 15703 Ha in the Catamarca province of Argentina, for exploration and mining Lithium.

(e) Ministry of Mines has been promoting R&D and technological innovation in mining and metallurgy sector through its Science and Technology Programme. It has recently been  decided  that  due  to  increased  emphasis  on  critical  minerals  in  emerging technologies and innovation, more and more projects on critical minerals are being encouraged under Science and Technology (S & T) Programme of Ministry of Mines. Accordingly, focus on extraction of strategic and critical minerals has been added in the thrust area of the Programme. A total of 11 projects related to Critical Minerals

have been sanctioned under said Programme during 2024-25 till 28.11.2024. Ministry of Mines has implemented Sustainable Mining by making provisions under Chapter-V of Mineral Conservation and Development Rules (MCDR), 2017. Provisions have been incorporated in the Rules for precaution against air pollution, prevention of discharge of toxic liquid,  precaution against  noise,  control of  surface subsidence etc.

Rule 35 of MCDR, 2017 provides for star rating of the mining leases based on the sustainable mining practices adopted by the miners. Further, as per Rule 35 (4) of MCDR, 2017, every holder of a mining lease shall achieve at least three-star rating within a period of four years from the date of commencement of mining operations and thereafter maintain the same on year-on-year basis.

*****