Critical Minerals Stockpiling Policy Likely In A Month, Pg22

Key Highlights:

• India is set to introduce a new policy on stockpiling critical minerals within a month to reduce import dependency and mitigate supply chain disruptions.
• The policy aims to establish a National Critical Mineral Stockpile Programme under the National Critical Minerals Mission (NCMM).
• An allocation of Rs 500 crore has been proposed for the mission period from 2024-25 to 2030-31 to develop this reserve.
• The National Critical Mineral Stockpile will initially include at least five critical minerals to ensure domestic availability during emergencies.
• India is 100% import-dependent for most critical minerals and has limited domestic processing capacity.

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Detailed Insights:

• Critical minerals like lithium, cobalt, nickel, and rare earth elements are crucial for clean energy technologies such as electric vehicles and wind turbines.
• Khanij Bidesh India Ltd (KABIL), India's overseas acquisition vehicle, has faced challenges in securing mineral assets globally, with limited success in Argentina for lithium blocks.
• China currently dominates 90% of global critical mineral processing, posing a strategic vulnerability for India.
• The government plans to institutionalize joint initiatives with central Public Sector Undertakings (PSUs) or private companies for the stockpiling program.
• To boost domestic processing, four states—Andhra Pradesh, Odisha, Gujarat, and Maharashtra—have been identified for setting up processing plants.
• Gujarat and Andhra Pradesh are slated to focus on rare earth processing, while Odisha will concentrate on nickel and Maharashtra on lithium.
• There is also an emphasis on developing indigenous technology for critical mineral processing to enhance self-reliance.

Key Concepts Involved:

• Critical Minerals: Essential raw materials vital for high-tech industries, clean energy, and national security.
• Strategic Reserve/Stockpile: A national reserve of essential goods or materials maintained to ensure supply during crises or disruptions.
• Supply Chain Disruptions: Interruptions or inefficiencies in the flow of goods, services, or information from origin to consumption.