Elimination of import duties on non-ferrous metal scraps proposed
The allocation of Rs.300 crores in the Union Budget 2025-26 for coal and lignite gasification will provide pathways to lower emissions, carbon capture and Hydrogen production, believes Minister of Coal and Mines G Kishan Reddy.
“This will give a huge impetus to India’s energy transition goals and boost our capabilities to produce clean coal while ensuring energy security for the country,” he said in comments on the budget presented in parliament by Finance Minister Nirmala Sitharaman on 1 Feb 2025.
Such reforms in the mining sector, especially with respect to critical minerals will mark a major step toward realizing the vision of Viksit Bharat 2047, building an ‘Atmanirbhar, future-ready Bharat’.
He noted that the proposed 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.
“The reforms also come at an opportune time of the launch of National Critical Mineral Mission, giving it a massive thrust and will accelerate its implementation,” he said, welcoming the Finance Minister Nirmala Sitharaman budget presentation.
As India continues to majorly rely on coal for meeting the energy demands of a growing and aspirational nation, the focus is to strike a balance between energy security and energy transition goals.
Reddy elaborated on the benefits for the sector from the proposed budget.
In line with the spirit of competitive federalism, the introduction of the State Mining Index is a transformative step that will enhance professionalization of State mining departments, encouraging them to innovate and adopt best practices in mineral exploration, auctioning and sustainable mining. This will drive efficiency, attract investments, and unlock the immense potential of our mineral resources.
The announcement of a Tailings Policy further bolsters the objectives of the National Critical Mineral Mission. By enabling the recovery of valuable critical minerals from mining tailings, this policy will enhance domestic availability thereby strengthening our strategic industries, including clean energy, semiconductors, defense, and space. Investing in research and development for efficient recovery processes will strengthen India’s self-reliance in critical mineral supply chains.
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.
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.
These measures will enhance the competitiveness of our secondary metal and critical mineral recycling industries, reduce production costs, and stimulate new investments in advanced recycling technologies.
“This will lead to a major boost in supply chain resilience and promote India as a global leader in critical minerals processing,” said Reddy.
“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.”
India is working on war footing to develop a sound domestic infrastructure for addressing climate change and advancing clean energy solutions, he highlighted.
“With this approach and continued reforms in the sector, India is set to emerge as a global player in sustainable mining, shaping the future of both our economy and the world,” said Reddy. Fiinews.com
