Hyderabad
Union Minister G Kishan Reddy on Thursday said the Indian government is strongly encouraging private companies to mine critical minerals abroad and bring them back to meet India’s growing domestic needs.
Speaking to reporters in Hyderabad, Reddy explained that the government wants Indian private firms to explore and mine overseas, supporting them through policy and financial incentives.
The Union Cabinet approved the National Critical Mineral Mission (NCMM) in January 2025, with a budget of Rs 16,300 crore and an expected investment of Rs 18,000 crore from public sector units. The mission aims to secure supplies of minerals essential for high-tech industries, clean energy, and defense.
Reddy said the government is exploring small mineral blocks in India too and has sanctioned Rs 32,000 crore for this effort. He highlighted that Prime Minister Modi promotes critical mineral partnerships during his overseas visits by signing agreements wherever possible.
The National Critical Mineral Mission will cover all stages — exploration, mining, processing, and recovery from old products. It plans to fast-track approvals for mining projects and provide financial incentives for exploration.
This focus has become more urgent after China announced export controls on some rare earth materials in April, creating global supply shortages. China controls over 90 per cent of the world’s magnet production capacity, making industries like automobiles, electronics, and clean energy highly dependent on Chinese supplies.
India is in talks with China to ensure a steady supply of rare earth metals but is also looking for alternative suppliers to reduce risks.
