Rs 34,300 Crore Initiative To Extract Critical Minerals Launched To Meet 500 MW Renewable Energy Target

New Delhi, Feb 22 (KNN) The Indian government has unveiled a comprehensive strategy to recover critical minerals from mining waste, with a substantial investment of Rs 34,300 crore under the National Critical Minerals Mission. 

This initiative, detailed in a joint report by FICCI and Deloitte, aims to strengthen domestic supply chains crucial for India's clean energy and high-tech industrial sectors.

The strategic importance of this initiative is underscored by India's ambitious targets: 500 GW of renewable energy by 2030, 30 percent electric vehicle adoption, and achieving net-zero emissions by 2070. 

These goals necessitate securing reliable supplies of critical minerals such as lithium, cobalt, nickel, and rare earth elements, for which India currently maintains complete import dependency.

In response to these challenges, the Union Budget 2025-26 has introduced targeted policies for mineral recovery from various sources, including mine tailings, red mud, chromite overburden, and uranium tailings. 

The Ministry of Mines has proposed amendments to the MMDR Act to enable miners to extract and commercialise critical minerals discovered within leased mining areas. 

The government has also implemented measures to attract private sector participation, including rationalised royalty rates for 24 critical minerals and customs duty exemptions on critical mineral imports.

The economic potential of this initiative is substantial, particularly in regions like Odisha's Sukinda Valley, where chromite overburden stockpiles potentially contain materials valued between USD 2.4 billion and USD 5.4 billion. 

Additionally, the country's copper slag deposits are estimated to hold valuable metals worth approximately USD 50 million. 

To facilitate private sector engagement, the government is considering various financial incentives, including Viability Gap Funding, reduced interest rates, and tax benefits.

On the international front, Khanij Bidesh India Ltd. (KABIL) is actively pursuing lithium exploration in Argentina and has established partnerships with UAE-based firms to secure international supply chains. 

Domestic research initiatives are being led by CSIR-IMMT and the Defence Metallurgical Research Laboratory to advance mineral extraction technologies. 

This effort gains additional significance as global demand for critical minerals is projected to increase sixfold by 2040, driven by the widespread adoption of electric vehicles and clean energy technologies.

The report projects that India's total installed power capacity will expand from 466 GW in January 2025 to 900 GW by 2032, with renewable sources accounting for 500 GW. 

This transition emphasises the urgent need for securing critical mineral supplies, making the success of the government's mine waste recovery initiative crucial for India's energy security and industrial development goals.

(KNN Bureau)