India’s moving fast to lock down the minerals it needs for clean energy and high-tech manufacturing. Under the big push of India’s critical minerals plan, the government is rolling out a behind-the-scenes system to speed up approvals, attract private capital, and strengthen supply chains. The central government is putting in place a confidential process to cut red tape and eliminate the usual delays in finding and mining these crucial minerals. They just announced this at a FICCI conference, saying they want private players to step in and help move things faster.

De-Risking Data and Clearances

To address delays in clearances, the government is working on a single-window clearance system for blocks of critical minerals and a pre-approved environmental baseline databank to reduce the time required for clearance. There is also a proposal for a Strategic Minerals Project Monitoring Group, patterned after fast-track infrastructure projects, to monitor the implementation.

A proposal is being reviewed to ensure the timely conversion of G3/G4 reconnaissance data to G1/G2 data, with viability-linked incentives for private explorers. Industry representatives emphasize the need for quality geological data. Kishore S, COO of Hindustan Zinc Limited, said that most of the data available is still at the preliminary stage, requiring billions of dollars in exploration to make mineral blocks bankable.

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Bridging the Processing Gap

The Government of India has provided 100% import duty exemption on 24 critical mineral products for a period. However, this has been done with an understanding that the government will eventually need to build domestic mineral processing capacity to support a resilient supply chain over time through capital investment, such as through the government’s Rs. 7,280 crore production-linked incentive scheme, which is aimed at increasing mineral processing capacity and establishing rare earth processing facilities in the states of Odisha, Andhra Pradesh and Tamil Nadu.

Research institutions have also begun to assess the ability to recover rare earth elements from mine tailings and coal ash, with some initial success from pilot testing. The government emphasises that developing processing capabilities will enable India to end its status as a raw-material exporter.

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Canada Signals an Investment Partnership

The Canadian Government has announced that it has committed $2 billion to a funding mechanism for critical minerals sovereign funds, and that it will also consider matching Indian investments in Canadian critical mineral projects. Canadian companies have over $336 billion in global mining assets, and mineral exports from Canada to India totalled over $2 billion in 2024, with potash and copper accounting for the largest share of those exports.

With increased geopolitical competition and growing demand for lithium, cobalt, nickel, and rare earths, India’s critical minerals plan and its implementation will determine whether it successfully builds resilient supply chains to support its clean energy transition and future industrial economy.

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