The Indian government has established a panel tasked with recommending legislative measures.
The panel, chaired by NITI Aayog member V K Saraswat, comprises seven members and aims to devise strategies for the economically viable recovery of critical minerals found in small quantities. Critical minerals, such as lithium, are indispensable for the manufacturing of electric vehicles, highlighting the strategic importance of their extraction. Recognising the significance of these minerals, the panel will focus on formulating legislative measures to enable the optimal and scientific mining of deep-seated mineral deposits like copper, gold, and diamond, typically extracted through underground mining techniques. An official memorandum issued by the mines ministry outlines the committee’s mandate, which includes not only recommending legislative measures but also formulating strategies to promote awareness and acceptance of mining reforms among state governments. This emphasis on popularising the impact of mining reforms underscores the government’s commitment to ensuring sustainable and responsible mining practices.
The criticality of minerals like lithium has been underscored by recent findings, with the Geological Survey of India identifying substantial reserves in the Salal-Haimana area of Jammu & Kashmir. However, despite the significance of these resources, the government encountered lukewarm response during the auction of critical mineral blocks, leading to the cancellation of 13 out of the 20 blocks initially put up for sale. Despite the setback, the government remains steadfast in its efforts to harness the potential of critical mineral reserves. Notably, the second round of auctions for six blocks has been completed as scheduled, while seven mines from the cancelled blocks have been earmarked for auction under the third round. This proactive approach reflects the government’s commitment to leveraging critical minerals to drive industrial growth and technological innovation. As the panel begins its deliberations, stakeholders across industries will keenly await the legislative framework that emerges, anticipating its role in shaping the future of critical mineral extraction and its implications for India’s economic trajectory.
