Cabinet approvals on January 29 2025

On January 29 2025, the Union Cabinet, chaired by Prime Minister (PM) Narendra Modi has approved the following proposals:

i.Launch of the ‘National Critical Mineral Mission’ (NCMM) to build a resilient ‘Value Chain’ for critical mineral resources essential for Green Technologies with a total cost of Rs. 34,300 crore over a period of 7 years.

ii.Revised Mechanism for Procurement of Ethanol by Public Sector Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme – Price Adjustment for Ethanol Supply Year (ESY) 2024-25.

Cabinet approves National Critical Mineral Mission(NCMM):

i.The Union Cabinet has approved the launch of the National Critical Mineral Mission (NCMM) with an allocation of Rs.16,300 crore (USD 1.88 billion), envisaging a total outlay of Rs.34,300 crore over a period of 7 years.

• NCMM aims to attract an investment of Rs.18,000 crore (USD 2.08 billion) from Public Sector Undertakings (PSUs) and other entities.

ii.The announcement for launching the NCMM was made by the Union Minister, Nirmala Sitharaman, Ministry of Finance (MoF) in the Union Budget for 2024-25.

iii.The mission will cover all stages of the mineral value chain, including exploration, mining, beneficiation, processing, and recycling.

• Additionally, financial incentives will be provided for critical mineral exploration.

iv.The mission will also support Indian PSUs and private companies in acquiring critical mineral assets abroad and strengthening trade ties with resource-rich countries.

v.This initiative aligns with the ‘Atmanirbhar Bharat’ programme to address challenges in critical minerals, essential for sectors like high-tech industries, clean energy, and defence.

Points to Note:

i.The Mines and Minerals (Development and Regulation) Act or MMDR Act, 1957 was amended in 2023 to promote exploration and mining of these minerals.

• Following this, the Ministry of Mines (MoM) auctioned 24 blocks of strategic minerals.

ii.The Geological Survey of India (GSI) has undertaken 368 exploration projects for critical minerals over the past 3 years, with 195 projects currently active in the first quarter of Financial Year 2025-26 (FY 26).

• 24 Critical Minerals: Beryl, Cadmium, Cobalt, Gallium, Glauconite, Graphite, Indium, Lithium, Molybdenum, Nickel, Niobium, Phosphate (without uranium), Platinum group of elements, Potash, Rare earth minerals (excluding Uranium and Thorium), Rhenium, Selenium, Tantalum, Tellurium, Tin, Titanium and ores (ilmenite, rutile, leucoxene), Tungsten, Vanadium, Zirconium and ores (including zircon).

iii.The Science and Technology – Promotion of Research and Innovation in Start-ups and MSMEs (S&T PRISM) programme was launched in 2023 to foster innovation and Research and Development (R&D) in this field.

Cabinet approves Revised Ethanol Procurement Prices

i.The Cabinet Committee on Economic Affairs (CCEA) has approved the revision of the ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25, starting from 1st November 2024 to 31st October 2025.

ii.This revision, part of the Ethanol Blended Petrol (EBP) Programme of the Government of India (GoI), fixes the administered ex-mill price of ethanol from C Heavy Molasses (CHM) at Rs. 57.97 per litre (l), up from Rs. 56.58 per l.

iii.The revised pricing ensures continued stability for ethanol suppliers, reducing crude oil imports and promoting environmental sustainability.

iv.The new pricing will ensure Goods and Service Tax (GST) and transportation charges are separately payable to benefit sugarcane farmers.

v.As of ESY 2023-24, OMCs have achieved an average blending of 14.60%, up from 38 crore litres in 2013-14 to 707 crore litres.

• The program has led to savings of approximately Rs. 1,13,007 crore in foreign exchange and a substitution of 193 lakh metric tonnes (MT)of crude oil.

Note: 

i.The government has advanced its target for 20% ethanol blending in petrol from 2030 to ESY 2025-26. OMCs plan to achieve 18% ethanol blending in ESY 2024-25.

ii.Investments are also being made to increase the capacity of ethanol distilleries to 1713 crore l per annum.

iii.The EBP programme was launched in 2003 by the Ministry of Petroleum & Natural Gas (MoP&NG) .