Budget speech of Hon’ble Finance Minister covered key initiatives that are being embarked on by the Ministry and includes i) Auction of Offshore Mineral Blocks (ii) Critical Minerals Mission (iii) Elimination of custom duty on 25 critical minerals and reducing basic custom duty on two critical minerals (iv) Eliminating custom duty on blister copper.
Initiatives reflect our commitment to sustainable development, technological innovation, and economic growth The Budgetary proposals and allocations reflect the Hon’ble Prime Minister Narendra Modi’s of an Atmanirbhar Bharat and will propel India into becoming a $5 Trillion economy Enhanced budget allocations for the Geological Survey of India (GSI), Indian Bureau of Mines (IBM), and the National Mineral Exploration Trust (NMET) will bolster exploration activities, promote sustainable mining practices, and support comprehensive exploration projects
Hon’ble Finance Minister Nirmala Sitharaman today announced a series of transformative reforms and budgetary allocations aimed at bolstering India’s mineral and mining sector. Her budget speech covered key initiatives that are being embarked on by the Ministry and includes i) Auction of Offshore Mineral Blocks (ii) Critical Minerals Mission (iii) Elimination of custom duty on 25 critical minerals and reducing basic custom duty on two critical minerals (iv) Eliminating custom duty on blister copper.
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These initiatives reflect our commitment to sustainable development, technological innovation, and economic growth. From increased transparency, better resource utilisation, employment generation, spurring investments, the reforms attend to all emergent needs of the sector and nudge the entire value chain of development of critical minerals in India. The auction of the first tranche of offshore blocks under the Offshore Areas Mineral (Development and Regulation) Act, 2002 will expand our capabilities and opportunities tremendously.
Exploration reports of 10 blocks located in India’s Exclusive Economic Zone (EEZ) are available for auction for grant of composite licence. Of these, 7 blocks of poly-metallic nodules & crusts are located in Andaman Sea, 3 blocks of lime-mud are located off the Gujarat coast. The mineral blocks which contain critical minerals like Cobalt and Nickel which are key to manufacturing low-carbon technologies to generate, store and transmit clean energy. Tapping into offshore mineral resources, particularly critical minerals like cobalt and nickel, will support industries like clean energy and steel manufacturing.
Further, a major shot in the arm for the critical minerals sector is the launch of the National Critical Minerals Mission (NCCM). The Mission will address the entire supply chain of critical minerals, from domestic production to recycling including acquisition of critical mineral assets abroad, trade and market access, scientific research and technology development in various stages of the critical minerals value chain, building of expertise and a skilled workforce in this domain and recycling of critical minerals. The move will incentivize the Indian industry to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources through recycling. The Budgetary proposals and allocations reflect the Hon’ble Prime Minister Narendra Modi’s vision of an Atmanirbhar Bharat and will propel India into becoming a $5 Trillion economy.
The elimination of import duties on 25 critical minerals, with reductions for two others, will reduce costs for industries reliant on these minerals, attract investments in processing and refining, and support the growth of downstream industries. This move is significant for shielding India from elevated levels of import reliance and supply risks owing to the global trends of geo-political turbulence. Additionally, the zero import duty on blister copper will stabilise the supply chain for copper refiners, crucial for industries such as electronics and construction, and enhance the global competitiveness of Indian copper products.
Enhanced budget allocations for the Geological Survey of India (GSI), Indian Bureau of Mines (IBM), and the National Mineral Exploration Trust (NMET) will bolster exploration activities, promote sustainable mining practices, and support comprehensive exploration projects. The Rs. 1,300 crore allocation for GSI will improve geoscience data collection and strategic planning, while the Rs. 135 crore for IBM will enhance regulatory efficiency and environmental protection. The Rs. 400 crore for NMET will accelerate mineral exploration, potentially leading to the discovery of new resources, encourage startups and MSMEs in the sector.
Further, funding for research programs by the Ministry of Mines will drive innovation and technological advancements in extraction and processing techniques of minerals. The support for the Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC) will aid the aluminium industry in developing new alloys and reducing environmental impact. Lastly, the grant for the National Institute of Rock Mechanics (NIRM) will boost research and development to enhance safety and productivity in mining operations.
The budgetary announcements for the Minerals sector mark a turning point in modernising India’s mining sector and taking a giant leap towards attaining Atmanirbharta. Bolstering transparency, innovation, and sustainability, these initiatives will enhance our economic growth, environmental stewardship, and global competitiveness.
G Kishan Reddy
Union Minister of Coal and Mines
