Centre clears ₹16,300 cr for critical minerals, targets ₹34,300 cr investment

PM Modi-led union cabinet has approved an outlay of ₹16,300 crore for the National Critical Mineral Mission (NCMM). The Centre expects an additional investment of ₹18,000 crore from PSUs and other enterprises.

The mission will include all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products. The mission will entail setting up mineral processing parks and supporting the recycling of critical minerals. The Centre has also proposed setting up the Centre of Excellence on Critical Minerals.

“The mission aims to fast-track the regulatory approval process for critical mineral mining projects. Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings,” the Centre said in a statement.

The critical mineral mission was announced by Nirmala Sitharaman in the post-election union budget announced in July last year.

Under the mission, relevant ministries, PSUs, private companies, and research institutions will also be involved. Under the July 2024 Budget, the government had already eliminated custom duties on a slew of critical minerals, to increase the availability of critical minerals in the country.

Revision in ethanol procurement prices approved

The economic affairs cabinet also has approved a revision in ethanol procurement prices for public Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme for the 2024-25 supply year, running from November 1, 2024, to October 31, 2025.

The ex-mill price of ethanol derived from C Heavy Molasses (CHM) has been set at ₹57.97 per litre, marking a 2.4% increase from ₹56.58 per litre.

“The approval will not only facilitate the continued policy for the Government in providing price stability and remunerative prices for ethanol suppliers but will also help in reducing dependency on crude oil imports, savings in foreign exchange and bring benefits to the environment,” the centre said in a statement.

To support sugarcane farmers, GST and transportation charges will be paid separately, as before. The 3% hike in CHM ethanol prices aims to ensure sufficient supply for higher blending targets.

Under the Ethanol Blended Petrol (EBP) programme, the government intends to promote alternative, eco-friendly fuels and reduce energy import dependence. Public OMCs blend ethanol with petrol, with blending rising from 38 crore litres in 2013-14 to 707 crore litres in 2023-24, achieving 14.6% blending. The 20% ethanol blending target has been preponed to ESY 2025-26 from 2030, with an 18% target for 2024-25.

Ethanol blending has saved ₹1.13 lakh crore in forex and replaced 193 lakh metric tonnes of crude oil.