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BUSINESS & TRADE NOVEMBER 21, 2025 | The Indian Eye 32

India Pivots Hard on Critical Minerals

as Cabinet Clears Royalty Overhaul and

ONGC Expands into Rare Earths

From revising royalty rates for high-tech minerals to expanding exploration
into rare earths and helium, India is building the foundations of a self-reliant critical-mineral

ecosystem—one that could shape its economic and strategic future

OUR BUREAU
New Delhi

ndia has taken a significant step in its criti-
cal-minerals strategy, with the Union Cabinet
Iapproving long-pending royalty revisions for
Caesium, Graphite, Rubidium and Zirconium—
minerals essential for electronics, defense, EV bat-
teries, fiber optics, aerospace and nuclear energy.
The decision, officials said, will boost domestic
production, reduce import dependence and unlock
fresh investments in a sector long constrained by
pricing ambiguities.
Information and Broadcasting Minister Ash-
wini Vaishnaw said the revised royalty framework
will enable smooth auction of mineral blocks
containing these elements. The shift is expected
to open up not just these individual deposits but
also associated critical minerals—such as lithium,
tungsten and rare earth elements—often found
alongside them. For the first time, royalty rates on
graphite will move from a fixed per-tonne levy to
a percentage-based ad valorem model, allowing
rates to reflect fluctuations in international prices. China today sits at the center of the global critical-minerals ecosystem, controlling not just large reserves but the entire value
The change comes at a time when India im- chain—from mining and processing to refining and manufacturing (File photo)
ports nearly 60 per cent of its graphite needs de-
spite its central role in EV battery manufacturing. clean energy, semiconductors, electronics and de- als, giving Beijing enormous leverage over future
While nine graphite mines currently operate, of- fense. As part of the mission, nine Centers of Ex- clean-energy industries. Even minerals mined
ficials say more than 70 new blocks are moving cellence (CoEs) have been established to build in- in Africa, Latin America or Australia are often
through the pipeline, signaling the scale of future digenous processing capabilities—India’s biggest shipped to China for processing before returning
domestic capacity. Zirconium—vital in nuclear re- weakness in the minerals value chain. Mohammad to global markets. This dominance allows China
actors and high-temperature applications—along Sadiq, Director (G) at the Ministry of Mines, said to influence prices, dictate supply flows, and shape
with Caesium and Rubidium, both used in ad- that the ability to develop the processing and re- technological standards, leaving countries like In-
vanced electronics, GPS systems, fiber optics and fining ecosystem will define India’s strategic au- dia racing to build self-reliant, resilient alternatives.
night-vision devices, will now enter the auction cy- tonomy in the years ahead. “The major challenge Meanwhile, ONGC continues to push bound-
cle under clearer financial rules. is how we can develop the processing value chain. aries in traditional exploration, stepping up ac-
But even as the Cabinet moves to unlock We are working at a good pace,” he said. tivity in the Krishna-Godavari and Mahanadi
new mining opportunities, India’s largest energy The CoEs—from IISc Bengaluru to C-MET basins while expanding Enhanced Oil Recovery
producer is widening its own exploration horizon. Hyderabad and seven others—will operate on a programmes across mature fields. Sinha said the
ONGC’s Director (Exploration), O P Sinha, con- hub-and-spoke model, with nearly 90 industry and company is aggressively adopting new technolo-
firmed that the company is now evaluating rare academic partners collaborating on next-gen min- gies and forming collaborations to cut costs and
earth minerals and helium prospects—resources eral processing technologies. The government has improve drilling efficiency.
central to the global shift toward clean technolo- also approved a `1,500-crore incentive scheme to Taken together, the Cabinet’s royalty reforms,
gies. “Our energy consumption is rising exponen- accelerate recycling of critical minerals, reducing ONGC’s diversification, and the NCMM’s institu-
tially, and domestic exploration must play a much reliance on imported raw materials. tional framework reflect a single national priority:
bigger role,” Sinha told ANI. ONGC has already China today sits at the center of the global crit- reducing vulnerability in a global minerals market
detected traces of helium in existing gas wells and ical-minerals ecosystem, controlling not just large dominated by a few countries. As the clean-ener-
is assessing commercial extraction possibilities. reserves but the entire value chain—from mining gy race accelerates, India’s push to secure critical
These moves align with the government’s and processing to refining and manufacturing. It minerals—from exploration to processing—marks
National Critical Mineral Mission (NCMM), refines more than 80–90% of the world’s graph- a turning point in the country’s industrial and stra-
launched this year to secure essential materials for ite, rare earth elements, and key battery materi- tegic roadmap.

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