A list of 30 minerals that are critical to the energy and mobility transitions was released in July this year. To facilitate self-sufficiency on the critical minerals front, the Ministry of Mines announced a financial incentive for exploration, equivalent to 25% of the project cost, for public as well as private agencies. Incentivising domestic exploration for critical minerals is crucial to reaching India’s long-term goal of net-zero by 2070.
What will be the criteria and schedule for availing the incentive?
India has approved 15 private exploration agencies as of now. Will this incentive attract more private agencies to participate in exploration activities?
Even though 100 per cent foreign direct investment (FDI) is allowed in the mining and exploration sector, currently, the sector has not received significant FDI. Will Government’s efforts encourage international agencies to participate in mining and exploration activities in India?