Amendments to India’s Mines and Minerals (Development and Regulation) Act 1957 are reportedly in the works that will allow private companies to dig up vital minerals. The fifth set of changes in this law since 2014, the latest changes are expected to repeal the ban on private mining of six minerals, including lithiumThat goes into the batteries that power electric vehicles (EVs) and is at the center of a global struggle for supply with geopolitical undertones, given China’s lead in efforts to make batteries and tie up EV supply chains.
As it happens, India could potentially achieve lithium self-sufficiency and even more, thanks to substantial reserves discovered earlier this year in Jammu and Kashmir, if initial estimates are confirmed. Can be as large as 5.9 million tonnes. While mining in India has long been dominated by the state, the logic of economic liberalization demands that this work be done by those who are best placed to do so.
Therefore, private participation is important for efficient reserve exploitation which will yield the best results for us. Given the projected needs of EV manufacturing, it would be of interest to a number of stakeholders. This is one area where India will have to chase the Chinese lead.
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UPDATE: July 12, 2023, 11:41 PM IST