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Modi Cabinet approves Rs 16,300-crore National Critical Minerals Mission, says Ashwini Vaishnaw

Union Minister Ashwini Vaishnaw said the Cabinet has approved the 'National Critical Mineral Mission' to build a resilient value chain for critical mineral resources vital to green technologies, with an outlay of Rs 34,300 crore over seven years.

Union Minister Ashwini Vaishnaw
Union Minister Ashwini Vaishnaw Image Source : PTI
New DelhiPublished: , Updated:

Union Minister Ashwini Vaishnaw on Wednesday briefed media persons on key decisions taken by the Cabinet over several projects. The Cabinet has approved Rs 16,300 crore for the National Critical Minerals Mission, he added.

"The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs.16,300 crore and expected investment of Rs.18,000 crore by PSUs, etc. As part of the Atmanirbhar Bharat initiative, and recognizing the indispensable role of critical minerals in high-tech industries, clean energy, and defense, the Government of India has undertaken several initiatives over the past two years to address challenges in the critical minerals sector," he said.

There is a need to establish an effective framework for India's self-reliance in the critical mineral sector. In line with this vision, the Finance Minister announced the setting up of the Critical Mineral Mission in the Union Budget for 2024-25 on 23rd July 2024, read a statement released by the government.

 
The National Critical Mineral Mission, approved by the Union Cabinet, will encompass all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products. The mission will intensify the exploration of critical minerals within the country and in its offshore areas. It aims to create a fast track regulatory approval process for critical mineral mining projects. Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings, it added.

Cabinet approves Mechanism for procurement of ethanol 

The Cabinet also approved the Mechanism for procurement of ethanol by Public Sector Oil Marketing Companies (OMCs) under Ethanol Blended Petrol (EBP) Programme - Revision of ethanol price for supply to Public Sector OMCs for Ethanol Supply Year (ESY) 2024-25, it read.

"The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved revision of ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25 starting from 1st November, 2024 to 31st October 2025 under the Ethanol Blended Petrol (EBP) Programme of the Government of India.  Accordingly, the administered ex-mill price of ethanol for the EBP Programme derived from C Heavy Molasses (CHM) for the Ethanol Supply Year 2024-25 (1st November 2024 to 31st October 2025) has been fixed at Rs.57.97 per litre from Rs.56.58 per litre," it added.

The approval will not only facilitate the continued policy for the Government in providing price stability and remunerative prices for ethanol suppliers but will also help in reducing dependency on crude oil imports, savings in foreign exchange and bring benefits to the environment.  In the interest of sugarcane farmers, as in the past, GST and transportation charges would be separately payable. Increase in prices of CHM Ethanol by 3 per cent will assure sufficient availability of ethanol to meet the increased blending target.

The government has been implementing the Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 20 per cent. This programme is being implemented across the country to promote the use of alternative and environment-friendly fuels. This intervention also seeks to reduce import dependence for energy requirements and give boost to the agriculture sector. During the last ten years (as on 31.12.2024), ethanol blending in petrol by Public Sector Oil Marketing Companies (OMCs) has resulted in approximate savings of more than Rs 1,13,007 crore of foreign exchange and crude oil substitution of about 193 lakh metric tonnes.

Ethanol blending by Public Sector Oil Marketing Companies (OMCs) has increased from 38 crore litre in Ethanol Supply Year 2013-14 (ESY – currently defined as ethanol supply period from 1st November of a year to 31st October of the following year) to 707crore litre achieving average blending of 14.60 per cent in ESY 2023-24.

 

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