The central government will set up a critical mineral mission for domestic exploration, recycling of minerals and overseas acquisition of critical mineral assets, Finance Minister Nirmala Sitharaman said in her Union Budget speech on June 23.
The mission's mandate will include technology upgrade, devealopment fo skilled workforce, and extended producer responsibility framework suitable financing, Sitharaman said.
On July 22, the Economic Survey 2023-24 flagged concerns that the geographic concentration and trade restrictions on critical and rare earth minerals, which are vital for advancing clean energy technologies and electric mobility, is a "significant constraint" on the use of renewables and EV ambitions of India.
India has been actively pursuing international collaborations to enhance its critical minerals supply chain. Partnerships with countries like Australia, known for its rich mineral resources, and participation in frameworks such as the Mineral Security Partnership (MSP) are part of this strategy.
The mining sector is hopeful of more financial incentives for critical minerals. If the Budget offers support, such as viability gap funding, to exploration companies facing economic hurdles, it would be a shot in the arm.
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