Implementation of India's National Critical Mineral Mission (NCMM): UPSC Current Affairs Story Arc

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GS-1GS-2GS-39 events · 2025-03-14 → 2026-02-01

India is 100% import-dependent for 10 'survival' minerals like Lithium and Cobalt. To break this, the government has pivoted from just mining to 'mining the waste,' backed by a ₹1,500 crore recycling scheme and the nation’s first-ever Tailing Policy.

Overview

The National Critical Mineral Mission (NCMM) is India’s master plan to secure the 'building blocks' of the green economy—Lithium, Cobalt, and Rare Earths. Spanning from early 2025 to 2026, this arc shows a shift from policy intent to granular execution: launching the first-ever exploration auctions, amending the MMDR Act to allow private entry, and securing overseas mines via KABIL. It culminates in a unique circular economy approach, where waste from old mines (tailings) is re-processed and coking coal is elevated to 'strategic' status to protect the domestic steel industry. This is not just a mining story; it is a story of national security and the path to Net Zero 2070.

How This Story Evolved

First auctions launched (Item 1) and Mission details released (Item 18) → Guidelines for CoEs issued (Item 3) and exploration targets set (Item 6) → MMDR Act amended to facilitate the sector (Item 13) → Recycling scheme approved (Item 2) → Diplomacy recalibrated based on Mission goals (Item 4) → Scope expanded to Coking Coal (Item 5) → Tailing Policy introduced to manage waste from this expansion (Seed).

  1. 2025-03-14: India's 1st exploration licence auction for critical minerals launched
    More details

    UPSC Angle: India launches first exploration licence auction for critical minerals.

    Key Facts:

    • Union Coal and Mines Minister G. Kishan Reddy
    • auction of Exploration Licences (ELs)
    • 13 exploration blocks
    • critical minerals
    • Goa Chief Minister Pramod Sawant
    • Dona Paula
    • Launched by Union Coal and Mines Minister G. Kishan Reddy
  2. 2025-03-25: National Critical Mineral Mission (NCMM) Launched
    More details

    UPSC Angle: National Critical Mineral Mission aims to secure critical mineral supply.

    Key Facts:

    • National Critical Mineral Mission (NCMM) approved on January 29, 2025.
    • Focus on exploration, mining, and processing of critical minerals.
    • Khanij Bidesh India Ltd. (KABIL) leads overseas acquisitions.
    • Agreement with CAMYEN (Argentina) for lithium brine exploration across 15,703 Ha.
    • MoU with Australia's CMFO for lithium and cobalt assets.
    • ₹500 crore allocated for processing parks.
    • ₹1,500 crore allocated for recycling.
  3. 2025-04-17: National Critical Mineral Mission (NCMM)
    More details

    UPSC Angle: Guidelines issued for Centres of Excellence under NCMM.

    Key Facts:

    • Ministry: Ministry of Mines, Government of India
    • Aim: To enhance exploration, mining, processing, recycling, and securing supply chains for critical minerals
    • Minerals: lithium, cobalt, rare earth elements (REEs), graphite, nickel, and others
    • To support: Net Zero 2070 goals, Atmanirbhar Bharat, and energy security
    • Launched in: Union Budget 2024–25
  4. 2025-06-20: National Critical Mineral Mission Launched in India
    More details

    UPSC Angle: National Critical Mineral Mission (NCMM) launched in 2025 for self-reliance.

    Key Facts:

    • National Critical Mineral Mission (NCMM)
    • 2025
    • Geological Survey of India (GSI)
    • 1,200 exploration projects
    • 2024–25 to 2030–31
    • 30 critical minerals identified in 2022
    • 24 minerals under Central Government auction authority
    • MMDR Act, 1957
  5. 2025-08-20: Mines and Minerals (Development and Regulation) Amendment Bill, 2025
    More details

    UPSC Angle: Mines and Minerals (Development and Regulation) Amendment Bill, 2025 passed.

    Key Facts:

    • Amends the Mines and Minerals (Development and Regulation) Act, 1957
    • Allows leaseholders to apply to the state government for adding other minerals to an existing lease
    • No additional amount needs to be paid for inclusion of critical and strategic minerals like lithium, graphite, nickel, cobalt, gold, and silver
    • Expands the scope of the National Mineral Exploration Trust to fund the development of mines and minerals
    • Removes the limit on the sale of minerals produced by captive mines
    • Allows for a one-time extension of the area under a mining or composite lease for deep-seated minerals (more than 200 metres from the surface)
    • Provides for establishing an authority to register and regulate mineral exchanges
    • Central government will frame rules regarding mineral exchanges, including registration, fees, prevention of insider trading, and grievance redressal
  6. 2025-09-04: Cabinet Approves ₹1,500 Cr. Scheme for Critical Minerals Recycling
    More details

    UPSC Angle: Cabinet approves ₹1,500 Cr. scheme for critical minerals recycling.

    Key Facts:

    • Scheme outlay: ₹1,500 crore
    • Duration: FY 2025-26 to FY 2030-31
    • Eligible feedstock: e-waste, lithium-ion battery scrap, catalytic converters
    • Annual recycling capacity target: 270 kilotons
    • Annual critical mineral production target: 40 kilotons
    • Capital subsidy: 20% on plant, machinery, and utilities
    • Operating expense subsidy: Linked to incremental sales over the base year
    • Cap for large units: ₹50 crore (₹10 crore for OPEX)
    • Part of National Critical Mineral Mission (NCMM)
    • Cabinet approved ₹1,500 cr scheme
    • Focus on critical minerals recycling
  7. 2026-01-17: India's Minerals Diplomacy recalibrated after NCMM launch
    More details

    UPSC Angle: India's Minerals Diplomacy recalibrated after NCMM launch.

    Key Facts:

    • National Critical Mineral Mission (NCMM) launched in 2025
    • India is 100% import-dependent for 10 critical minerals
    • India-Australia Partnership (2022) identified five projects to secure lithium for EVs
    • 2025 India-Japan Memorandum focuses on joint extraction in third countries
    • TRUST Initiative with the USA proposes frameworks for rare-earth processing and battery recycling technologies
    • India's ₹200 crore agreement with Argentina via KABIL aims to fix long-term costs for domestic battery manufacturers
    • Geological Survey of India has undertaken over 368 critical mineral exploration projects in the last three years
    • ₹34,300 crore allocated for the National Critical Mineral Mission through 2031
    • Recycling Incentive Scheme: A ₹1,500 crore scheme launched in 2025 to build a circular economy for critical minerals from e-waste
    • Mines and Minerals (Amendment) Act 2025: Exclusive authority to the Centre to auction mining leases for 24 strategic and critical minerals
    • India is 100% import-dependent for 10 critical minerals, including Lithium and Cobalt.
    • National Critical Mineral Mission (NCMM) 2025 is a 7-year, 34,300 crore mission.
    • India joined the Mineral Security Partnership (MSP), a 14-nation club.
    • Domestic refined copper production surged by 43.5% in early FY26.
    • Geological Survey of India has undertaken over 368 critical mineral exploration projects in the last three years.
  8. 2026-01-31: GoI Notifies Coking Coal as Critical Mineral
    More details

    UPSC Angle: GoI notifies Coking Coal as a critical mineral.

    Key Facts:

    • In January 2026, the Government of India (GoI) notified 'Coking Coal' as a critical and strategic mineral.
    • This was done under the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957.
  9. 2026-02-01: India's first Tailing Policy
    More details

    UPSC Angle: India is introducing its first Tailing Policy for critical minerals.

    Key Facts:

    • First Tailing Policy introduced
    • Focuses on managing waste from critical mineral mining
    • Aims to recover important minerals from tailings

Genesis

Trigger

The Union Cabinet's formal approval of the National Critical Mineral Mission (NCMM) on January 29, 2025.

Why Now

The move was triggered by China's tightening export controls on Rare Earth Elements and India's urgent need for battery minerals to support its 2030 EV targets and Net Zero 2070 goals.

Historical Context

Previously, mining was governed by the rigid MMDR Act of 1957, which lacked specific provisions for deep-seated minerals. The 2023 and 2025 amendments were necessary to de-risk exploration for private players.

Key Turning Points

  1. [2025-08-20] Passage of the MMDR Amendment Bill, 2025

    It legalized the 'diversification' of mining leases, allowing existing holders to add critical minerals to their portfolios without extra payments.

    Before: Leaseholders were restricted to specific minerals. After: Flexible mining portfolios to incentivise critical mineral recovery.

Key Actors and Institutions

NameRoleRelevance
G. Kishan ReddyUnion Coal and Mines MinisterLaunched the first-ever auction of Exploration Licences (ELs) for 13 blocks in March 2025, initiating the mission's field execution.
Khanij Bidesh India Ltd. (KABIL)Joint Venture CPSEThe spearhead for 'Minerals Diplomacy,' securing a 15,703-hectare lithium brine exploration deal in Argentina and assets in Australia.

Key Institutions

  • Ministry of Mines
  • Geological Survey of India (GSI)
  • Khanij Bidesh India Ltd. (KABIL)
  • National Mineral Exploration Trust (NMET)

Key Concepts

Exploration Licence (EL)

A specialized permit introduced to allow private companies to explore for deep-seated or critical minerals, typically involving high risk and advanced technology.

Current Fact: The first auction for ELs for 13 exploration blocks was launched on March 14, 2025.

Circular Economy in Minerals

A system focused on recycling and recovering minerals from end-of-life products (e-waste, batteries) and mining waste to reduce primary extraction needs.

Current Fact: A ₹1,500 crore recycling scheme was approved with a target to produce 40 kilotons of critical minerals annually.

Coking Coal

A high-grade coal essential for smelting iron ore into steel; unlike thermal coal, it is not used for power but for metallurgy.

Current Fact: Notified as a 'Critical and Strategic Mineral' under the MMDR Act in January 2026.

What Happens Next

Current Status

As of February 2026, the mission has moved into the waste-management and circularity phase with the notification of the first Tailing Policy.

Likely Next

Operationalizing the ₹500 crore processing parks and the results of the 1,200 GSI exploration projects scheduled through 2030-31.

Wildcards

Fluctuations in global lithium prices could stall private interest in EL auctions; geopolitical tensions in the 'Lithium Triangle' (South America) could disrupt KABIL’s overseas acquisitions.

Why UPSC Cares

Syllabus Topics

  • Distribution of Key Natural Resources
  • Bilateral and Regional Agreements involving India
  • Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
  • Conservation, Environmental Pollution and Degradation

Essay Angles

  • Minerals: The New Oil of the 21st Century
  • Circular Economy: India's Answer to Resource Scarcity
  • Resource Diplomacy and the Quest for Strategic Autonomy

Prelims Likely: Yes

Mains Likely: Yes

Trend Signal: rising

Exam Intelligence

Previous Year Question Connections

  • Tested India's membership in the Minerals Security Partnership and the central government's auction powers under the 2023 MMDR amendment. — This arc is the direct implementation of the 2023 legislative changes, specifically the first actual auctions and the 2025 amendment.
  • Why rare earth elements are in short supply and China's role. — Explains the 'Genesis' of the NCMM—China's export controls (Item 7) directly mirror the 2012 concern.

Prelims Angles

  • List of minerals: Lithum, Cobalt, Graphite, and Nickel are now central government auction subjects.
  • Specific Outlay: ₹1,500 crore for recycling and ₹500 crore for processing parks.
  • Institutions: GSI's target of 1,200 exploration projects by 2030-31.
  • Legal: The 2025 MMDR amendment allows no additional payment for adding critical minerals to an existing lease.

Mains Preparation

Sample Question: Critically analyze the multifaceted strategy adopted under the National Critical Mineral Mission (NCMM) to ensure India's mineral security. How does the inclusion of 'Coking Coal' and the 'Tailing Policy' reflect a shift in India's resource management paradigm?

Answer Structure: Intro: Define NCMM and its 2025 context → Body 1: Domestic measures (Auctions, MMDR 2025, GSI targets) → Body 2: Overseas strategy (KABIL, Australia/Argentina deals) → Body 3: Sustainability/Circularity (Recycling scheme, Tailing Policy) → Critical Analysis: Challenges (Import dependence, tech gaps) → Conclusion: Way forward via the 2070 Net Zero lens.

Essay Topic: The Geopolitics of the Green Transition: From Fossil Fuels to Critical Minerals.

Textbook Connections

Geography of India, Majid Husain (9th ed.) > Chapter 8: Energy Resources > p. 38

Explains why India imports coking coal (deposits deep/expensive/limited).

Gap: Textbook focuses on coking coal as a 'resource scarcity' issue; the arc shows its 're-classification' as a 'strategic mineral' in 2026 to facilitate faster domestic mining.

Indian Economy, Vivek Singh (7th ed.) > Chapter 14: Infrastructure > p. 427

Defines the role of State vs Central power in the MMDR Act 1957.

Gap: The textbook doesn't cover the 2025 amendment allowing leaseholders to add critical minerals for 'free' or the new Exploration Licences (ELs).

Quick Revision

  • NCMM approved on Jan 29, 2025; Union Budget 2024-25 initiated it.
  • ₹1,500 crore recycling scheme targeting 40 kilotons of production by FY31.
  • MMDR Amendment 2025 allows adding critical minerals to existing leases for free.
  • KABIL secured 15,703 hectares in Argentina for lithium brine exploration.
  • GSI to conduct 1,200 exploration projects between 2024-25 and 2030-31.
  • Coking Coal notified as a critical and strategic mineral in Jan 2026.
  • India is 100% import-dependent for 10 minerals, including Lithium and Cobalt.
  • The 2025 India-Japan MoU focuses on joint extraction in third countries.

Key Takeaway

The NCMM marks India's transition from a passive mineral importer to an active resource manager through a combination of 'Exploration Auctions,' 'Minerals Diplomacy,' and 'Waste-to-Wealth' circularity.

All Events in This Story (9 items)

  1. 2025-03-14 [Economy] — India's 1st exploration licence auction for critical minerals launched
    Union Coal and Mines Minister G. Kishan Reddy launched the first-ever auction of Exploration Licences (ELs) for 13 exploration blocks for critical minerals, which is aimed to unlock India's untapped critical and deep-seated mineral resources. The launch occurred in the presence of Goa Chief Minister Pramod Sawant in Dona Paula.
    More details

    UPSC Angle: India launches first exploration licence auction for critical minerals.

    Key Facts:

    • Union Coal and Mines Minister G. Kishan Reddy
    • auction of Exploration Licences (ELs)
    • 13 exploration blocks
    • critical minerals
    • Goa Chief Minister Pramod Sawant
    • Dona Paula
    • Launched by Union Coal and Mines Minister G. Kishan Reddy
  2. 2025-03-25 [Economy] — National Critical Mineral Mission (NCMM) Launched
    The National Critical Mineral Mission (NCMM), approved on January 29, 2025, aims to secure a sustainable supply of critical minerals for India by enhancing domestic exploration, mining, and processing capabilities. Khanij Bidesh India Ltd. (KABIL) is leading overseas acquisitions, including agreements with Argentina for lithium brine exploration and Australia for lithium and cobalt assets. The mission includes a budget of ₹500 crore for processing parks and ₹1,500 crore for recycling.
    More details

    UPSC Angle: National Critical Mineral Mission aims to secure critical mineral supply.

    Key Facts:

    • National Critical Mineral Mission (NCMM) approved on January 29, 2025.
    • Focus on exploration, mining, and processing of critical minerals.
    • Khanij Bidesh India Ltd. (KABIL) leads overseas acquisitions.
    • Agreement with CAMYEN (Argentina) for lithium brine exploration across 15,703 Ha.
    • MoU with Australia's CMFO for lithium and cobalt assets.
    • ₹500 crore allocated for processing parks.
    • ₹1,500 crore allocated for recycling.
  3. 2025-04-17 [Schemes & Programs] — National Critical Mineral Mission (NCMM)
    The Ministry of Mines has issued guidelines for establishing Centres of Excellence (CoEs) under the National Critical Mineral Mission (NCMM). The NCMM aims to ensure a secure, resilient, and sustainable supply of critical minerals for India's clean energy transition, technological advancement, defence, and strategic sectors.
    More details

    UPSC Angle: Guidelines issued for Centres of Excellence under NCMM.

    Key Facts:

    • Ministry: Ministry of Mines, Government of India
    • Aim: To enhance exploration, mining, processing, recycling, and securing supply chains for critical minerals
    • Minerals: lithium, cobalt, rare earth elements (REEs), graphite, nickel, and others
    • To support: Net Zero 2070 goals, Atmanirbhar Bharat, and energy security
    • Launched in: Union Budget 2024–25
  4. 2025-06-20 [Schemes & Programs] — National Critical Mineral Mission Launched in India
    The Government of India launched the National Critical Mineral Mission (NCMM) in 2025 to ensure long-term self-reliance in critical minerals. The Geological Survey of India (GSI) will conduct 1,200 exploration projects between 2024–25 and 2030–31 under NCMM. A list of 30 critical minerals was identified in 2022, with 24 now under Central Government auction authority via the MMDR Act, 1957.
    More details

    UPSC Angle: National Critical Mineral Mission (NCMM) launched in 2025 for self-reliance.

    Key Facts:

    • National Critical Mineral Mission (NCMM)
    • 2025
    • Geological Survey of India (GSI)
    • 1,200 exploration projects
    • 2024–25 to 2030–31
    • 30 critical minerals identified in 2022
    • 24 minerals under Central Government auction authority
    • MMDR Act, 1957
  5. 2025-08-20 [Polity & Governance] — Mines and Minerals (Development and Regulation) Amendment Bill, 2025
    The Parliament has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, to amend the Mines and Minerals (Development and Regulation) Act, 1957. The bill aims to liberalise and modernise India's mineral sector, focusing on critical and strategic minerals for economic security and green transition. It allows existing leaseholders to diversify operations by adding minerals to their portfolio, especially critical minerals, and strengthens the Union government’s power to promote mineral market development.
    More details

    UPSC Angle: Mines and Minerals (Development and Regulation) Amendment Bill, 2025 passed.

    Key Facts:

    • Amends the Mines and Minerals (Development and Regulation) Act, 1957
    • Allows leaseholders to apply to the state government for adding other minerals to an existing lease
    • No additional amount needs to be paid for inclusion of critical and strategic minerals like lithium, graphite, nickel, cobalt, gold, and silver
    • Expands the scope of the National Mineral Exploration Trust to fund the development of mines and minerals
    • Removes the limit on the sale of minerals produced by captive mines
    • Allows for a one-time extension of the area under a mining or composite lease for deep-seated minerals (more than 200 metres from the surface)
    • Provides for establishing an authority to register and regulate mineral exchanges
    • Central government will frame rules regarding mineral exchanges, including registration, fees, prevention of insider trading, and grievance redressal
  6. 2025-09-04 [Economy] — Cabinet Approves ₹1,500 Cr. Scheme for Critical Minerals Recycling
    The Union Cabinet has approved a scheme with an outlay of ₹1,500 crore to promote the recycling of critical minerals. This scheme aims to enhance resource efficiency, reduce import dependence, and support the circular economy. By recycling critical minerals, India can secure a stable supply of essential resources for its manufacturing and technology sectors.
    More details

    UPSC Angle: Cabinet approves ₹1,500 Cr. scheme for critical minerals recycling.

    Key Facts:

    • Scheme outlay: ₹1,500 crore
    • Duration: FY 2025-26 to FY 2030-31
    • Eligible feedstock: e-waste, lithium-ion battery scrap, catalytic converters
    • Annual recycling capacity target: 270 kilotons
    • Annual critical mineral production target: 40 kilotons
    • Capital subsidy: 20% on plant, machinery, and utilities
    • Operating expense subsidy: Linked to incremental sales over the base year
    • Cap for large units: ₹50 crore (₹10 crore for OPEX)
    • Part of National Critical Mineral Mission (NCMM)
    • Cabinet approved ₹1,500 cr scheme
    • Focus on critical minerals recycling
  7. 2026-01-17 [International Relations] — India's Minerals Diplomacy recalibrated after NCMM launch
    India is strategically using international partnerships to secure mineral supplies like Lithium and Cobalt, following the National Critical Mineral Mission (NCMM) 2025 launch and China's export controls on rare earths. This involves managing mining, processing, and manufacturing collaborations to protect economic growth and security. India is 100% import-dependent for 10 critical minerals, including Lithium and Cobalt, vital for EV batteries.
    More details

    UPSC Angle: India's Minerals Diplomacy recalibrated after NCMM launch.

    Key Facts:

    • National Critical Mineral Mission (NCMM) launched in 2025
    • India is 100% import-dependent for 10 critical minerals
    • India-Australia Partnership (2022) identified five projects to secure lithium for EVs
    • 2025 India-Japan Memorandum focuses on joint extraction in third countries
    • TRUST Initiative with the USA proposes frameworks for rare-earth processing and battery recycling technologies
    • India's ₹200 crore agreement with Argentina via KABIL aims to fix long-term costs for domestic battery manufacturers
    • Geological Survey of India has undertaken over 368 critical mineral exploration projects in the last three years
    • ₹34,300 crore allocated for the National Critical Mineral Mission through 2031
    • Recycling Incentive Scheme: A ₹1,500 crore scheme launched in 2025 to build a circular economy for critical minerals from e-waste
    • Mines and Minerals (Amendment) Act 2025: Exclusive authority to the Centre to auction mining leases for 24 strategic and critical minerals
    • India is 100% import-dependent for 10 critical minerals, including Lithium and Cobalt.
    • National Critical Mineral Mission (NCMM) 2025 is a 7-year, 34,300 crore mission.
    • India joined the Mineral Security Partnership (MSP), a 14-nation club.
    • Domestic refined copper production surged by 43.5% in early FY26.
    • Geological Survey of India has undertaken over 368 critical mineral exploration projects in the last three years.
  8. 2026-01-31 [Economy] — GoI Notifies Coking Coal as Critical Mineral
    The Government of India (GoI) notified 'Coking Coal' as a critical and strategic mineral under the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 in January 2026.
    More details

    UPSC Angle: GoI notifies Coking Coal as a critical mineral.

    Key Facts:

    • In January 2026, the Government of India (GoI) notified 'Coking Coal' as a critical and strategic mineral.
    • This was done under the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957.
  9. 2026-02-01 [Environment & Ecology] — India's first Tailing Policy
    India is introducing its first Tailing Policy, aimed at managing the waste produced during the mining of critical minerals. The policy focuses on recovering important minerals from the tailings and ensuring environmentally sound management of the waste.
    More details

    UPSC Angle: India is introducing its first Tailing Policy for critical minerals.

    Key Facts:

    • First Tailing Policy introduced
    • Focuses on managing waste from critical mineral mining
    • Aims to recover important minerals from tailings

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