Indian Economy News

Government to invest nearly Rs. 17,306 crore (US$ 2 billion) to develop critical minerals sector

  • IBEF
  • January 29, 2025

India’s Ministry of Mines has allocated nearly Rs. 16,441 crore (US$ 1.9 billion) to develop its critical minerals sector as it seeks to secure key raw materials like lithium, essential for its energy transition and infrastructure needs. In 2023, India identified 30 critical minerals, including lithium, to reduce its reliance on imports. Prime Minister Mr. Narendra Modi's cabinet is expected to initially approve over Rs. 2,595.90 crore (US$ 300 million) this week, according to a source familiar with the matter.  

The National Mineral Exploration Trust will contribute Rs. 8,700 crore (US$ 1.01 billion), the Department of Science and Technology Rs. 1,000 crore (US$ 115.57 million), and the Geological Survey of India Rs. 4,000 crore (US$ 462.27 million). This funding, confirmed in a Ministry of Mines presentation, highlights India’s commitment to fostering a domestic critical minerals industry and reducing import dependency. However, details of the incentive programme are yet to be finalised. India continues to develop lithium processing technology, an area currently dominated by China, and has sought technical assistance from countries like Australia, Russia, and the United States. Despite launching its first critical minerals auction in late 2023 and offering 48 mineral blocks for development through 2024, bids were secured for only half the blocks. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

Partners
Loading...