New Delhi, Feb 1 (IANS): The reforms in the mining sector, especially with respect to critical minerals, will mark a major step toward realising the vision of Viksit Bharat by 2047, Union Coal and Mines Minister G. Kishan Reddy said on Saturday.
Presenting the Budget 2025-26, Finance Minister Nirmala Sitaraman emphasised that it aims to initiate transformative reforms across six domains in which mining plays a significant role.
"This also signals India’s major push towards energy transition and sustainable development, strengthening our global competitiveness over the next five years," said Reddy.
In line with the spirit of competitive federalism, the introduction of the State Mining Index is a transformative step that will enhance the professionalisation of state-mining departments, said the minister, adding that the announcement of a ‘Tailings Policy’ further bolsters the objectives of the National Critical Mineral Mission.
The elimination of import duties on non-ferrous metal scraps and critical mineral scraps, including cobalt powder and lithium-ion battery (LIB) scraps, is a game-changer, he added.
"The allocation of Rs 300 crore for coal and lignite gasification will provide pathways to lower emissions, carbon capture and Hydrogen production," the minister said.
From being a corruption-laden and litigation-ridden sector prior to 2014, today India’s mining sector is aspiring to be a global player in sustainable mining and critical mineral value chain.
The series of reforms in the coal and mining sector will drive production and innovation at home and at the same time position India as a key player in the global minerals market.
Building on the series of tax relief measures for the mining sector of last year’s Budget, particularly concerning critical minerals, this year’s budget also introduces a range of progressive tax proposals.
These measures will significantly enhance the competitiveness of the entire mining sector, especially as India begins to solidify its position in the critical mineral industry.
India’s mining sector is aspiring to be a global player in sustainable mining and critical mineral value chains.
"As we strive to achieve the goal of Net Zero emissions by 2070 and lead the global energy transition race, the mining sector will play a critical role in securing the critical minerals required for this transformation," said Reddy.