CII recommends automatic mining rights, viability gap funding and FTAs to boost India's critical minerals sector

New Delhi [India], July 3 (ANI): The Confederation of Indian Industry (CII) on Thursday gave key recommendations on the exploration and mining of critical minerals in India.

According to CII, the government should consider allowing automatic rights to mine for players being awarded the Exploration Licence.

"Environmental regulations should be streamlined and enhanced through the adoption of technology. CII recommends implementing a unified compliance framework that consolidates all state and central environmental clearances," said Rajiv Memani, President of CII, during a press conference in New Delhi.

To improve critical minerals data accessibility and transparency, the CII further suggests that a country like India should establish a National Critical Minerals Data Repository.

Acknowledging the sector's long gestation periods and inherent risks, CII emphasised the need for government support through Viability Gap Funding (VGF) and dedicated financial provisions to attract private participation.

CII also highlighted the importance of securing global supply chains by developing exclusive chapters on critical minerals in Free Trade Agreements (FTAs) with resource-rich nations such as Australia, Peru, Chile, Indonesia, and Oman.

Additionally, ""In order to meet India's ambitious energy transition targets, CII suggests drawing up of sector-specific strategies including that of mobility and proactively creating Green Hydrogen and Renewable Energy hubs. CII would also be launching a Mission on Energy transition, to encourage industry to shift to low-carbon alternatives," Rajiv Memani further added.

However, the CII President raised concerns about the critical mineral supply deficiency to the auto sector .

"Auto is a big concern. In some other sectors also there are concerns, In the auto, the concerns are more serious than what's come out till now. In fact, some of the most conservative companies are already starting to give some guidance on lowering their production levels going forward," Memani said in the press conference.

In the same press conference, CII also projected India's economy to grow at a pace of 6.4-6.7 per cent in 2026-27, boosted by strong domestic demand.

Amidst this global flux, India has shown resistance and has shown a better growth trajectory as compared to other major economies such as China, the United Kingdom (UK), the US and the Euro area. Industry body CII also proposed a series of next-generation reforms needed to enhance the ease of doing business in India. (ANI)