Budget: Duty waiver on critical minerals to add investments, boost mining sector growth, says mines minister

New Delhi, Jul 23 (PTI) Mines minister G Kishan Reddy on Tuesday said waiving off of import duty on 25 critical minerals and reducing the levy on two others will bring down input costs for domestic players dependent on these minerals, attract investments in processing and refining, and support the growth of downstream industries.

Finance Minister Nirmala Sitharaman, while presenting the FY25 budget, proposed to fully exempt 25 critical minerals from custom duties and reduce basic custom duties (BCD) on two of them.

"This move is significant for shielding India from elevated levels of import reliance and supply risks owing to the global trends of geopolitical turbulence," the minister.

Additionally, the zero import duty on blister copper will stabilise the supply chain for copper refiners, crucial for industries such as electronics and construction, and enhance the global competitiveness of Indian copper products.

Further, a major shot in the arm for the critical minerals sector is the launch of the National Critical Minerals Mission (NCCM).

The mission, he said, will address the entire supply chain of critical minerals, from domestic production to recycling, including acquisition of critical mineral assets abroad, trade and market access, scientific research and technology development, building of expertise and skilled workforce in this domain.

Reddy said that the Union Budget includes a series of transformative reforms and budgetary allocations aimed at bolstering the country's mineral and mining sector.

"The budget covered key initiatives that are being embarked on by the Ministry of Mines including auction of offshore mineral blocks...Eliminating custom duty on blister copper," he said.

The minister expressed confidence that the increased allocations for the Geological Survey of India (GSI), Indian Bureau of Mines (IBM), and the National Mineral Exploration Trust (NMET) will bolster exploration activities, promote sustainable mining practices, and support comprehensive exploration projects.

The Rs 1,300 crore allocation for GSI will improve geoscience data collection and strategic planning, while Rs 135 crore for IBM will enhance regulatory efficiency and environmental protection. The allocation of Rs 400 crore for NMET will accelerate mineral exploration, potentially leading to the discovery of new resources, encouraging startups and MSMEs in the sector, Reddy said. PTI SID HVA