The move is aimed at strengthening India’s energy security and supply chain security as the elements are highly used in the country, especially in the electric vehicle, electronic manufacturing and strategic sectors.
In a move aimed at boosting the domestic production of critical minerals and reduce import dependence, the central government approved the rationalisation of royalty rates of graphite, caesium, rubidium, and zirconium.
The decision was taken by the Cabinet under the Chairmanship of Prime Minister Narendra Modi. The decision comes at a time when China, which holds the world monopoly in critical minerals production, is increasingly imposing export restrictions. India’s move to push domestic production will also cut down dependence on imports from Beijing.
Cabinet Approves Rationalisation of Royalty
These four are important minerals for high-tech applications and energy transition. Graphite and zirconium are also among the 24 critical and strategic minerals listed in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
India’s Big Push To Boost Domestic Production
The move is aimed at strengthening the country’s energy security and supply chain security as the elements are highly used in the country, especially in the electric vehicle, electronic manufacturing and strategic sectors. An increase in indigenous production of these minerals would lead to a reduction in imports and supply chain vulnerabilities and also generate employment opportunities in the country.
Usage of Graphite, Zirconium, Caesium & Rubidium
At present, nine graphite mines are working in the country and further 27 blocks have been auctioned. Further, GSI and MECL have handed over 20 graphite blocks that will be auctioned and around 26 blocks are under exploration.
