NATIONAL CRITICAL MINERALS MISSION (NCMM)

GS2 GOVERNANCE

Objective of NCMM

• Primary Aim: To encourage Indian PSUs and private sector companies to acquire critical mineral assets abroad and promote trade with resource-rich countries.
• Expenditure: Rs. 16,300 crore with an expected investment of Rs. 18,000 crore by PSUs and other entities.
• Exploration: Focus on intensifying the exploration of critical minerals both within India and in offshore areas.
• Scope: Covers the entire value chain of critical minerals, including exploration, mining, beneficiation, processing, and recovery from end-of-life products.
• Incentives: Financial incentives will be provided for critical mineral exploration, aiming to boost domestic capacity.
• Collaboration: Involves coordination between various ministries, PSUs, private companies, and research institutions.
• Additional Measures: Includes the establishment of mineral processing parks, centers of excellence, recycling of critical minerals, fast-tracking regulatory approvals, and building a stockpile of critical minerals.

Need for NCMM

• Self-Reliance: Reducing India’s dependency on imports for critical minerals and enhancing domestic supply.
• Economic Growth: Propelling India’s economic growth and enabling the transition to clean energy.
• Energy Transition: Supporting India’s goals of sustainable energy and reducing reliance on non-renewable energy sources.

Critical Minerals

• Definition: Minerals essential for economic development and national security, whose lack of availability can cause supply chain vulnerabilities.
• List of Critical Minerals: Includes Cobalt, Copper, Germanium, Lithium, Tungsten, and other minerals vital for various sectors.
• Vulnerabilities: Critical minerals are often concentrated in limited geographical locations, creating risks related to geopolitical conflicts and global supply chain disruptions.

Recent Measures

• Mines and Minerals (Development and Regulation) Act: Amendment in 2023 to promote the exploration and mining of critical minerals.
• S&T PRISM Program: A 2023 initiative aimed at funding start-ups and MSMEs to bridge the gap between research and commercialization of critical minerals.

Significance of Critical Minerals

• Renewable Energy: Key in the development of clean energy technologies like solar, wind, and energy storage systems.
• Defense & Strategic Technologies: Crucial for defense and strategic technologies including advanced electronics and aerospace.
• EVs & Battery Manufacturing: Essential for manufacturing electric vehicle batteries and other green technologies.
• Semiconductors & High-Tech Industries: Vital for the production of semiconductors, high-tech industries, and other cutting-edge technologies.

UPSC Mains Practise Question:

“Discuss the significance of the National Critical Minerals Mission (NCMM) in strengthening India’s self-reliance in critical minerals. How can the mission contribute to the country’s economic growth and clean energy transition? Analyze the challenges that India may face in achieving the objectives of this mission.”