The government eliminated customs duties on 25 essential minerals that are unavailable on the domestic market in the most recent budget. In order to encourage the processing of these minerals, particularly by MSMEs, she also lowered the basic customs charge on two more of them Anil Agarwal, the chairman of Vedanta.
Responded to the budget by stating that mining is one of the six industries that will undergo revolutionary changes in the upcoming five years According to Arum Misran, CEO of Hindustan Zinc Ltd, India is now a major participant in the vital minerals and sector because to the mining reforms included in the budget.
In a significant move aimed at unlocking the potential of India’s mineral resources, Finance Minister Nirmala Seetharaman, while presenting the Union Budget 2025, announced comprehensive reforms in the mining sector. The government will introduce a new policy framework that focuses on transparency, efficiency.
Driving Growth Through Reform
Highlighting the pivotal role of the mining industry in the Indian economy, the Finance Minister stated that the new reforms are designed to boost exploration, streamline clearances, and attract private investment, particularly in the realm of critical and strategic minerals like lithium, rare earth elements, and cobalt. These materials are crucial for sectors such as electric vehicles, renewable energy.
“The government recognizes the untapped potential in India’s mining sector, especially in the domain of critical minerals. A new policy will be framed to enhance transparency, reduce procedural bottlenecks, and promote responsible and sustainable mining,” said Seetharaman during her Budget speech and sustainable.
Key Highlights of the Proposed Mining Policy
The forthcoming policy will focus on several key areas:
- Ease of Doing Business: A single-window clearance system will be developed to accelerate approvals and permits for mining projects. This is expected to drastically reduce delays that currently deter private players from entering the sector extraction of critical minerals essential for India’s economic and technological future. electronics, and defense.
- Private Sector Participation: The government plans to encourage private sector exploration and extraction of critical minerals by offering incentives, clear regulatory guidelines, and a predictable policy environment.
- Sustainability and Environmental Safeguards: The new framework will include robust environmental and social safeguards to ensure that mining activities are environmentally sustainable and benefit local communities.
- Digitization and Monitoring: Use of advanced technologies like GIS mapping, AI, and blockchain will be promoted for real-time monitoring, ensuring better transparency and reducing illegal mining activities mining policy could serve as a cornerstone in unlocking the true value of India’s mineral wealth.
- Strategic Mineral Security: Recognizing the global competition for critical minerals, the policy will prioritize domestic exploration and development to reduce dependency on imports and ensure energy security.
Boosting Employment and Regional Development
Mining has traditionally been a major employment generator in mineral-rich but economically backward states such as Jharkhand, Odisha, and Chhattisgarh. The reforms are expected to drive regional development by revitalizing mining belts, creating direct and indirect employment opportunities, and enhancing state.
Industry Reactions
The announcement has been welcomed by industry bodies and experts. The Federation of Indian Mineral Industries (FIMI) lauded the move, stating that a structured and investor-friendly policy could transform India into a hub for critical mineral processing and exports This policy has the potential to make India self.
reliant in key minerals that are the backbone of modern technology. The focus on sustainability and The mining sector reforms outlined in Budget 2025 are aligned with India’s broader goals of economic growth, energy transition, and self-reliance. By focusing on efficiency, innovation, and environmental responsibility, the new.
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