Assignment: Formulate Public Policy for

Critical Minerals in India

Assignment submitted
in partial fulfilment of the requirements for the subject

Public Policy and Business Strategy

XLRI – Xavier School of Management

Table of Contents
1. Introduction to Critical Minerals.................................................................................3
2. Need for policy formulation regarding Critical Minerals in India.................................3
3. Evaluation of Policy Environment in other countries....................................................4
4. Formulation of policy for Critical Minerals in India......................................................8
4.1 Agenda Setting.................................................................................................................9
4.2 Policy Formulation.........................................................................................................11
4.3 Decision Making............................................................................................................12

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 4.4 Policy Implementation...................................................................................................14
4.5 Policy Evaluation...................................................................................................................16
Bibliography.....................................................................................................................19

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1. Introduction to Critical Minerals
Critical minerals are those that are essential to the economy and whose supply may be
disrupted. They include rare earth elements and other metals such as lithium, indium,
tellurium, gallium, and platinum group elements. (AmericanGeosciencesInstitute, 2023)

This definition suggests that the risk of a supply shortage of critical minerals and the
associated impact on the economy is relatively higher than other raw materials. Supply Risk
is a multidimensional metric that captures import dependence, recycling potential,
substitutability of the mineral, technical difficulties in mineral exploitation, and concurrent
social and environmental impacts that exacerbate supply risk. (Ganesan, 2014)

The global concentration of extraction and processing activities, governance systems, and
environmental footprints in resource-rich nations have a negative effect on availability risks.
Several of these minerals are inputs for traditional industries, but the majority are
indispensable for the high-tech products required for renewable energy, national defence,
information technology, aviation, and space research.

India’s Planning Commission report in 2011 categorised eleven minerals into metallic, non-
metallic, precious stones and metals, and strategic categories. Tin, cobalt, lithium,
germanium, gallium, indium, niobium, beryllium, tantalum, tungsten, bismuth, and selenium
were the strategic minerals. Due to the limited availability of substitutes and their demand
for high-technology products such as LCD screens, hybrid vehicles, wind turbine magnets,
and defence equipment, these minerals are deemed strategic. The report emphasised the
need to increase resource efficiency, identify substitutes, and advance mineral recycling at
the end of their useful lives. (Rajesh Chadha, Critical Minerals for India, 2022)

2. Need for policy formulation regarding Critical Minerals in India

The Ministry of Environment, Forest and Climate Change (2021) report that India has
implemented multiple measures to address climate change mitigation. In 2008, the Prime
Minister's Council on Climate Change declared the National Action Plan on Climate Change
(NAPCC) with the aim of attaining sustainable development that aligns with both economic
and environmental objectives. Furthermore, the Government of India declared its Nationally
Determined Contributions (NDC) in 2015 to decrease the emission intensity of its GDP by 33-
35% in 2030, as compared to the levels in 2005. The utilisation of critical minerals will
significantly influence these objectives.

India is expected to depend on imported green technologies in the next two decades
(Rajesh Chadha, 2022) to achieve its goal of decreasing emission intensity. However, there is

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a need to explore and optimise the utilisation of domestic mineral resources to meet the
country's long-term requirements. India can enhance its preparedness by establishing the
necessary foundation to investigate and extract minerals. India needs certain minerals to
prioritise securing supply chains and acquiring foreign mineral assets to ensure a consistent
supply.

3. Evaluation of Policy Environment in other countries

Governments across world have implemented various policies to ensure access to critical
minerals, such as providing state aid and foreign direct investment measures, due to
concerns regarding potential supply chain disruptions. This section delineates policy
measures in recent years by Australia, Canada, China, the European Union, Japan and the
United States with the aim of ensuring access to essential minerals.

Upon comparing these various jurisdictions, it can be observed that there are four distinct
directions of unilateral policy action.
 Some policies focus on increasing domestic resource extraction and processing
capabilities.
 Certain governments prioritise backing for innovative approaches that enhance the
recyclability of indicated minerals, explore alternative materials, or advance novel mining
technologies that enable the extraction of mineral deposits that are presently unfeasible.
 Some policies aimed at safeguarding domestic production capabilities and, in certain
instances, establishing strategic reserves.
 Certain nations prioritise the management of their exports and foreign investments.

This section will briefly explain the policy focus of various nations on a case-by-case basis:

Australia: The Critical Minerals Strategy of the Australian government was revised in March
of 2022. Currently, the focus is on providing investment assistance to the national mining
sector and the processing of essential minerals, as well as promoting research and
development and the development of infrastructure. Moreover, the government has
implemented fresh regulations regarding Foreign Direct Investment (FDI) that have
implications for overseas investments in the domain of Contract Manufacturing (CMs)
(Calvino, 2022)

 In 2022, several state aid measures have been implemented with the aim of facilitating
investment and fostering research and development. The total budget allocation for
these measures exceeds USD 1.6 billion.
 The establishment of the Critical Minerals Facility with an aim to facilitate the economic
growth of Australian enterprises by enabling them to extract and distribute essential
minerals to global markets.

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 The Critical Minerals Development Programme was initiated with the aim of expediting
the advancement and refinement of Critical Minerals (CM) resources.
 The modern manufacturing initiative facilitates the process of bringing innovative
manufacturing projects to the commercial market. It also encompasses the incorporation
of critical minerals as a key objective.
 The Australian government is utilising additional funding mechanisms, including the
Northern Australia Infrastructure Facility, to provide financial support for CM initiatives
in Western Australia and the Northern Territory.
 In accordance with the Australian industry participation regulations, investments
exceeding AUD 500 million or public procurement contracts/projects surpassing AUD 20
million are obligated to adhere to local value-added prerequisites.
 The Foreign Investment Reform (Protecting Australia's National Security) Act 2020 has
implications for foreign investments related to critical mineral resources in Australia,
even though FDI regulations in the country do not specifically target such resources.

Canada: The Canadian government has recently increased its financial support and
strengthened foreign investment regulations to reinforce its domestic supply and authority
over crucial minerals (Calvino, 2022). Additionally, the following measures were taken:

 Canada has allocated CAD 3.8 billion (equivalent to approximately USD 3 billion) in its
2022 federal budget to enhance its Critical Minerals Strategy. This will cover various
measures to enhance the production potential of CM, such as investments in
infrastructure, financial support for exploration and research and development projects,
funding for CM-related initiatives through the Strategic Investment Fund, and tax
concessions for eligible investments.
 The Canadian government has implemented stricter regulations on foreign direct
investment (FDI) to maintain domestic control over companies related to CM. One of the
regulatory modifications pertains to the creation of a screening mechanism for foreign
investment related to CM.
 Recently implemented regulations have limited the ability of foreign state-owned
enterprises to invest in the domestic critical minerals sector. On November 2, 2022, the
Canadian government enforced stricter FDI regulations by mandating the removal of
three Chinese investors from their holdings in the Canadian critical minerals industry.

China: China has recognised the strategic significance of critical minerals since the 1980s and
has implemented various strategies to enhance its domestic production (Calvino, 2022)
which include:

 The National Plan for Mineral Resources (2016-2020) outlines a strategic approach that
encompasses four primary objectives. These objectives include promoting exploration,
regulating mineral production in areas where China holds a comparative advantage,
decreasing the production of minerals that exhibit excess capacity, and ensuring a secure

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 supply of minerals to strategic emerging industries. To achieve its strategic objectives
China has adopted measures like:
o Promoting foreign investments abroad via its Belt and Road initiative
o Developing a circular economy in the mining industry
o Increasing support for exploration activities
 The nation is utilising the Belt and Road Initiative to facilitate investments in various key
sectors, such as mining, and has effectively secured numerous investment accords in
Africa and Latin America.
 To enhance its market dominance, the regulatory bodies facilitated the consolidation of
three state-owned enterprises (SOEs) that are engaged in the manufacturing of rare
earth metals. The primary aim of this merger was to augment their worldwide pricing
influence.
 In 2020, Beijing implemented a novel Export Controls Law that restricts the exportation
of strategic materials to foreign nations. The government has recently released a
preliminary proposal regarding the management of rare earth minerals, which includes
the introduction of a novel production quota system.
 The Chinese government has introduced fresh regulations for enterprises engaged in the
mining or mineral processing of rare earths, tungsten, and radioactive minerals in the
2021 Foreign Investment 'Negative List' with regard to FDI. In order to be listed abroad or
issue shares overseas, companies are required to obtain a permit from the government.

European Union: The European Commission (EC) released its most recent strategy for
safeguarding the supply chains of Critical Raw Materials (CRMs) on September 3, 2020
(Calvino, 2022). The document includes various mechanisms employed by the European
Union to mitigate the likelihood of supply chain disruption. These mechanisms encompassed
financial assistance and strategic management of the foreign direct investment.

 To encourage investments in the field of Critical Minerals, the EU deployed various

resources such as the European Investment Bank (EIB) and state aid mechanisms to fund
several projects related to critical raw materials (CRMs) across different member states,
including France and Spain. Additionally, the EU has undertaken pan-European
initiatives, such as the recently approved USD 3.5 billion programme in January 2021.
 The European Commission established the European Raw Materials Alliance, which is a
novel Public-Private Partnership (PPP) aimed at identifying, coordinating, and
streamlining investments in the domain of critical materials.
 The European Commission is utilising various funding initiatives such as the Horizon
Europe programme, the European Regional Development Fund, and other national
programmes to facilitate research and development endeavours aimed at enhancing the
recyclability of critical raw materials (CRMs), developing alternative materials, and
advancing mining technologies to exploit the mineral reserves of the region.

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 From 2020, the European Commission and various member states of the European
Union have implemented or strengthened screening protocols for foreign investments in
strategic sectors of the economy, which encompasses industries related to customer
relationship management. The objective of these mechanisms is to assess the suitability
of foreign ownership in these sectors.

Japan: In September 2020, the government in Tokyo revised its International Resource
strategy. The primary aim of this policy is to enhance the robustness of domestic supply
chains that necessitate CMs-related inputs, thereby decreasing import dependencies
(Calvino, 2022).

 Additional economic resources have been procured from funding institutions, such as
the Japan Bank for International Cooperation (JBIC) and the Development Bank of Japan
(DBJ), in order to obtain access to CMs that are manufactured overseas. An instance of
this nature was declared in July of 2021, wherein a state loan amounting to USD 106
million was granted to facilitate a project in Vietnam aimed at extracting zirconium
oxychloride for export to Japan.
 It is recommended to augment the strategic public reserves for all minerals and metals
that have been recognised as critical. The determination of minimum reserve levels for
public stockpiles will henceforth be based solely on the quantity of publicly held stocks,
without any amalgamation with privately held stocks.
 Screening mechanisms were imposed for businesses related to rare earths which will
make sure that foreign investors seeking to enter Japan’s CM industry will need
government authorization.
 The Japan Oil, Gas and Metals National Corporation (JOGMEC) to look after the
development of new recycling and recovery technologies, the exploration of new
reserves, as well as the provision of financial support to Japanese companies for
domestic and international projects.

United States of America: The US has implemented a variety of regulations with the aim of
enhancing the resilience of its domestic CM supply chain and decreasing the need for
imports (Calvino, 2022).

 In September 2020, Executive Order 13953 was issued, which highlights the potential
supply chain risks associated with import dependencies from foreign adversaries that
produce critical minerals.
 In February 2021, Executive Order 14017 was issued regarding America's Supply Chain.
This order mandates various federal agencies to conduct a comprehensive assessment of
the risks and challenges associated with different supply chains, particularly those
pertaining to critical materials. The agencies are further required to present proposals
aimed at enhancing the resilience of these supply chains.

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 Likewise, the Inflation Reduction Act (IRA) that was enacted in August of 2022 contains
various provisions aimed at bolstering the critical minerals industry in the United States.
 The implementation of these measures has led to an increase in government financing
for initiatives related to critical minerals. In response to Executive Orders, the
Department of Energy (DoE) and the Department of Defence (DoD) have implemented
modifications to their existing funding programmes and established new ones. The
objective is to enhance the resilience of supply chains related to critical minerals by
leveraging federal resources. In February of 2022, the Department of Energy (DoE) made
a commitment to allocate a sum of USD 2.91 billion towards the advancement of battery
production, which includes the acquisition of critical minerals necessary for their
manufacturing.
 Regarding the matter of public financing, the Innovative Technology Loan Guarantee
Programme, which is overseen by the Department of Energy, has experienced a
budgetary increase to $40 billion under the IRA. Furthermore, the production of Electric
Vehicles is now contingent upon the inclusion of content specifications for locally
produced CMs. Similarly, the Department of Energy (DoE) included multiple Critical
Materials (CMs) and their subsequent products under the Defence Production Act (DPA)
Title-III Section 303. This action triggered specific incentives associated with their
procurement by the public sector. The government has allocated a sum of USD 500
million to the DPA via the IRA.
 Similarly, the prioritisation of critical minerals' accumulation has also been emphasised.
With regard to this subject matter, the government has sanctioned modifications to the
management of strategic stockpiling in order to enhance the synchronisation of national
strategic reserves of essential resources.
 In September 2022, an Executive Order aimed at enhancing screening mechanisms for
foreign direct investment policies was implemented. This includes critical materials and
their associated supply chains. The aim of this regulation is to guarantee the prevention
of foreign investment by "adversaries" in strategic economic activities.

In light of escalating geopolitical tensions, there has been a trend towards the
implementation of national strategies aimed at enhancing global supply chains associated
with critical minerals. The aforementioned circumstances have resulted in the
implementation of various policy measures, all of which share the common goal of
enhancing local production capabilities and capitalising on the advantages associated with
expanding demand for said materials. However, the setting of agenda and policies regarding
critical minerals differs from country-to-country basis. Factors like current production
capacity, import dependencies, and type of existing trade policies will have an impact on
public policy to a large extent. The subsequent section will explain in brief about Indian
context and formulation of policy for India.

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4. Formulation of policy for Critical Minerals in India
For the purpose of formulation of policy for Critical Minerals in India, 5 stage Model is used
which is a watch glass model for policy formation. The model involves 5 stages:
 Agenda Setting
 Policy Formulation
 Decision Making
 Policy Implementation
 Policy Evaluation

4.1 Agenda Setting

India's economy is projected to expand, and sustainable development is being encouraged,

resulting in an anticipated rise in demand for critical minerals. As the third-largest global
consumer of these minerals, India's requirement for them is significant. India's economic
and strategic interests are at significant risk due to its heavy reliance on imports to fulfil its
crucial mineral needs.

Therefore, it is imperative for India to formulate a comprehensive policy pertaining to critical

minerals in order to guarantee a dependable and enduring source of these minerals. The
policy ought to prioritise the subsequent facets:

I. Exploration and Mining: India ought to encourage the exploration and extraction of
essential minerals within its borders to mitigate its reliance on imported resources.
The policy ought to be designed with the objective of promoting the involvement of
the private sector in the exploration and extraction of said minerals.
II. Recycling and Reuse: It is recommended that the policy be formulated in a manner
that promotes the advancement of technological solutions for the purpose of
recycling and reutilization of essential minerals. The adoption of recycling and reuse
practises can effectively mitigate the demand for said minerals and concurrently
curtail the ecological ramifications associated with their extraction and
manufacturing.
III. Strategic Reserves: India ought to establish strategic reserves of essential minerals to
guarantee a consistent supply in the event of a crisis or disturbance in the global
supply chain.
IV. Research and Development: The policy ought to prioritise the advancement of
research and development pertaining to critical minerals. This has the potential to
facilitate the advancement of novel technologies and methodologies for the
extraction, refinement, and utilisation of said minerals.
V. International Cooperation: It is recommended that India engage in collaborative
efforts with various nations and global entities in order to ensure a dependable and

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 enduring source of essential minerals. Collaborative endeavours such as joint
exploration and mining initiatives, knowledge and technology exchange, and
involvement in global discussions concerning essential minerals may be
encompassed within this scope.

The formulation of a policy pertaining to critical minerals is imperative for India's economic,
technological, and strategic pursuits. The proposed policy ought to prioritise the
advancement of domestic exploration and mining, recycling and reutilization, strategic
reserves, research and development, as well as international collaboration. Adopting a
comprehensive strategy towards critical minerals policy can facilitate the attainment of a
stable and reliable source of these minerals to meet India's developmental requirements.

Table 1 Available critical minerals in India

Critical Mineral Availability in India Geography

Andhra Pradesh, Madhya Pradesh, and
Antimony Reserves Rajasthan
Reserves and
Beryllium resources Rajasthan and Jharkhand
Cobalt Resources Madhya Pradesh, Orissa, and Jharkhand
Gallium Resources Tamil Nadu, Maharashtra, and Karnataka
Germanium Resources Rajasthan, Andhra Pradesh, and Kerala
Reserves and
Graphite resources Jharkhand, Arunachal Pradesh, and Tamil Nadu
Indium Resources Tamil Nadu and Kerala
Lithium Resources Karnataka and Rajasthan
Reserves and Madhya Pradesh, Maharashtra, Orissa, and
Manganese resources Karnataka
Niobium Resources Jharkhand and Chhattisgarh
Platinum Group
Metals (PGMs) Resources Madhya Pradesh and Orissa
Andhra Pradesh, Arunachal Pradesh,
Chhattisgarh, Jharkhand, Karnataka, Kerala,
Rare Earth Madhya Pradesh, Maharashtra, Odisha,
Elements (REEs) Resources Rajasthan, Tamil Nadu, and West Bengal
Scandium Resources Kerala and Tamil Nadu
Tantalum Resources Orissa and Jharkhand
Reserves and
Titanium resources Kerala, Tamil Nadu, and Orissa
Reserves and
Tungsten resources Rajasthan and Chhattisgarh

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 Andhra Pradesh, Kerala, Tamil Nadu, and
Vanadium Resources Rajasthan
Reserves and Rajasthan, Andhra Pradesh, Gujarat, and
Zinc resources Madhya Pradesh

4.2 Policy Formulation

Drawing from the aforementioned agenda, a prospective policy framework for India
concerning critical minerals is presented below.

I. Exploration and Mining:

a. Creation of National Critical Minerals Inventory: A collaborative initiative
comprising geological survey agencies, academia, and the private sector
will be undertaken to establish an all-encompassing catalogue of crucial
mineral reserves in India.
b. Encouragement for Private Sector Participation: The government intends
to provide incentives to private sector entities to engage in the
exploration and extraction of essential minerals. The proposed measures
encompass tax incentives, preferential financing options, and simplified
regulatory protocols.
c. Mapping of Geographical Areas for Exploration: The government intends
to identify potential exploration areas and encourage private sector
involvement in exploration activities based on the critical minerals
inventory.
II. Recycling and Reuse:
a. Creation of a National Recycling Program: The establishment of a national
recycling programme for critical minerals by the government is imminent,
wherein the process will encompass the collection, segregation, and
recycling of waste electronic and electrical equipment.
b. Incentives for Recycling: The government intends to provide inducements
to businesses to invest in the recycling of critical minerals, including tax
credits, subsidies, and grants.
c. Creation of a Certification Program: A programme for certification shall be
established to acknowledge corporations that engage in the
environmentally responsible recycling of essential minerals.
III. Strategic Reserves
a. Creation of National Strategic Reserve: The establishment of a strategic
reserve of essential minerals by the government is aimed at guaranteeing
a consistent supply in the event of a crisis or disturbance in the worldwide
supply chain.

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 b. Incentives for Private Sector Participation: The creation and maintenance
of strategic reserves will be incentivized for private sector players.
c. Creation of a Contingency Plan: In the event of a crisis or disruption, a
contingency plan shall be devised to effectively manage the release of
critical minerals from the strategic reserve.
IV. Research and Development
a. Establishment of a National Research and Development Program: The
establishment of a national research and development programme by the
government is aimed at promoting research and innovation in the critical
minerals field.
b. Creation of Centres of Excellence: In order to foster research and
development in the realm of critical minerals, collaborative efforts
between academia, research institutions, and the private sector will result
in the establishment of centres of excellence.
c. Promotion of Technology Transfer: The commercialization of research
outcomes will be facilitated by fostering collaboration between the public
and private sectors, thus promoting technology transfer.
V. International Cooperation:
a. Participation in International Forums: India has expressed its intention to
engage in international forums concerning critical minerals with the aim
of acquiring knowledge, exchanging optimal methodologies, and
establishing strategic alliances.
b. Bilateral Agreements with Other Countries: The signing of bilateral
agreements with other nations is anticipated for the purpose of
collaborating on exploration and mining initiatives, exchanging
technological and expert knowledge, and broadening the scope of supply
chain operations.
c. Formation of International Alliances: India intends to establish global
partnerships with other nations in order to ensure a dependable and
enduring source of essential minerals.

The policy framework outlined above has the objective of facilitating a dependable and
enduring supply of essential minerals to serve India's economic, technological, and strategic
objectives. The policy framework places significant emphasis on various aspects such as
domestic exploration and mining, recycling and reuse, strategic reserves, research and
development, and international cooperation. The efficacious execution of this policy
framework is anticipated to not only curtail India's reliance on imports but also foster
sustainable development.

4.3 Decision Making

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All stakeholders, including government agencies, private sector actors, academia, and civil
society organisations, would collaborate on the policy framework's decision-making process.
To include all stakeholders in the decision-making process, the following measures could be
taken:

I. Consultation and Engagement: The government should consult with stakeholders in

order to comprehend their perspectives on critical minerals policy, as well as their
needs and concerns. This could involve holding public consultations, seminars, and
roundtable discussions with various stakeholder group representatives.
II. Formation of Working Groups: Working groups can be established to bring together
stakeholders with expertise in various critical minerals policy aspects, such as
exploration and mining, recycling and reuse, strategic reserves, research and
development, and international cooperation.
III. Stakeholder Input and Recommendations: Working groups can provide
recommendations based on stakeholder input and research on various facets of the
critical minerals policy.
IV. Policy Formulation and Implementation: The government can use the working
groups' recommendations to formulate and implement policy in collaboration with
stakeholders.

Challenges involved in involving all stakeholders in the decision-making process:

I. Lack of Coordination: Different objectives and priorities among stakeholders could

make coordination difficult. To avoid conflicts and guarantee a shared vision for
critical minerals policy, it will be crucial to ensure that there is effective
communication and coordination between stakeholders.
II. Capacity Building: Some stakeholders, such as small and medium-sized businesses
and civil society organisations, may lack the expertise and capacity to participate in
the decision-making process effectively. To assure their participation, it will be
essential to provide them with the necessary support and capacity building.
III. Conflict of Interests: Stakeholders may have competing interests, particularly in areas
such as exploration and mining where there is competition for resources.
Transparency and effective conflict resolution mechanisms will be essential in
addressing these conflicts of interest.
IV. Regulatory Environment: The regulatory environment for critical minerals policy in
India is complex and may necessitate coordination among numerous government
agencies. It will be essential to ensure that the regulatory environment is conducive
to stakeholder involvement and does not erect extraneous barriers.
V. International collaboration: India should work with international organisations and
other nations to share information and best practices regarding the sustainable
management of critical minerals. The government can collaborate with international

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 partners to develop new technologies and investigate new sources of essential
minerals.
It is essential to include all stakeholders in the critical minerals policy decision-making
process to assure a shared vision and effective implementation. However, there are
obstacles associated with stakeholder engagement, such as lack of coordination, capacity
development, conflict of interest, and regulatory environment. Through effective
communication, capacity building, conflict resolution mechanisms, and regulatory reform,
these obstacles can be overcome.

IV.4 Policy Implementation

Measures to be taken in order to execute India's policy framework for key minerals:

Establish Implementation Framework: To supervise the implementation of the policy

framework, the government should establish an implementation framework consisting of a
project management team, steering committee, and working groups. Additionally, the
framework should contain timelines, deliverables, and performance indicators.

I. Establish Regulatory Mechanisms: The government should establish regulatory

mechanisms to supervise the exploration and mining of critical minerals as well as
the recycling and reuse of electronic and electrical waste. These mechanisms should
include licencing and permit processes, assessments of environmental and social
impact, and monitoring and reporting requirements.
II. Establish Incentive Mechanisms: Government should establish incentive mechanisms
to encourage private sector investment in exploration, extraction, and recycling of
critical minerals. These mechanisms may include tax incentives, grants, inexpensive
financing, and streamlined regulatory procedures.
III. Establish Strategic Reserves: The government should establish strategic reserves of
critical minerals to ensure a constant supply in times of crisis or disruption to the
global supply chain. The reserves should be administered by a dedicated agency and
reviewed and updated on a regular basis in response to changing market conditions.
IV. Promote Research and Development: The government should foster research and
development of critical minerals by establishing research centres and providing
funding for collaborative research projects with academia and the private sector.
Through technology transfer and incubation programmes, the government should
also promote the commercialization of research outcomes.
V. Promote International Cooperation: Through participation in international forums
and the signature of bilateral agreements with other nations, the government should
promote international cooperation on critical minerals. Additionally, the government
should form partnerships with international organisations to facilitate the exchange
of best practises and the promotion of sustainable development.

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 VI. Capacity Building: The government should provide capacity building assistance to
stakeholders, such as small and medium-sized businesses, civil society organisations,
and local communities, in order to assure their effective participation in the
implementation of the policy framework.
VII. Monitoring and Evaluation: The government should establish a monitoring and
evaluation framework to track the implementation of the policy framework and
identify improvement areas. This framework should incorporate performance
indicators, reporting mechanisms, and routine policy framework reviews.

Implementing the policy framework for critical minerals in India will require a
comprehensive strategy involving the establishment of regulatory and incentive
mechanisms, the creation of strategic reserves, the promotion of research and development,
the promotion of international cooperation, capacity building, and evaluation. Successful
implementation of the policy framework will require stakeholders and the government to
collaborate and coordinate effectively.

Assumptions to be considered while implementing the policy framework for critical minerals
in India:

I. Availability of Funds: The successful implementation of the policy framework will

necessitate substantial government and private sector investment. For the
implementation of the policy framework, sufficient funds are assumed to be
available.
II. Political Will: The implementation of the policy framework will necessitate the
continuous support and dedication of the government at all levels. The assumption is
that the policy framework will be implemented with a great deal of political will.
III. Stakeholder Participation: Stakeholders, including government agencies, private
sector actors, academic institutions, and civil society organisations, will be required
to participate actively in the successful implementation of the policy framework. The
presumption is that stakeholders will be willing to partake in the policy framework's
implementation.
IV. Availability of Skilled Workforce: The successful implementation of the policy
framework will necessitate a workforce with specialised knowledge in areas such as
exploration and mining, recycling and reuse, and research and development. For the
implementation of the policy framework, it is assumed that a sufficient number of
qualified labourers will be available.
V. Access to Technology: Access to sophisticated technology and machinery for the
exploration, mining, and recycling of critical minerals is necessary for the successful
implementation of the policy framework. The assumption is that the requisite
technology and equipment will be available for the implementation of the policy
framework.

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 VI. Favourable Market Conditions: Implementing the policy framework effectively will
necessitate favourable market conditions, including stable demand and prices for
critical minerals. The premise is that favourable market conditions will persist for the
implementation of the policy framework.
VII. Supportive Regulatory Environment: Successful implementation of the policy
framework requires a regulatory environment that encourages and facilitates private
sector investment in the exploration, mining, and recycling of critical minerals. It is
assumed that the regulatory environment will facilitate the implementation of the
policy framework.

When implementing the policy framework for critical minerals in India, it is essential to bear
in mind these assumptions. Monitoring and evaluating the implementation of the policy
framework on a regular basis will help to identify any challenges or issues that may arise,
allowing for the implementation of appropriate solutions.

4.5 Policy Evaluation

Evaluation criteria to assess the effectiveness of the policy framework for critical minerals in
India:

I. Availability and Accessibility of Critical Minerals: As a consequence of the policy

framework, the availability and accessibility of critical minerals should increase over
time. This can be determined by monitoring production, imports, and prices of
critical minerals.
II. Reduction in Environmental and Social Impacts : The policy framework should seek to
minimise the environmental and social impacts of exploration, extraction, and
recycling of essential minerals. This can be measured by observing compliance with
environmental and social impact assessments, environmental remediation and
restoration, and community engagement and participation.
III. Increase in Investment in Critical Minerals : The policy framework should encourage
private sector investment in critical mineral exploration, extraction, and recycling.
This can be measured by monitoring the level of investment in projects involving
critical minerals, the number of companies engaged in critical minerals activities, and
the level of innovation and technological advancement in critical minerals activities.
IV. Promotion of Sustainable Development: The policy framework should promote
sustainable development in the critical minerals sector, including preservation of
biodiversity, promotion of local economic growth, and development of green
technologies. This can be measured by monitoring the adoption of sustainable
practises and technologies, economic diversification, and job creation in the critical
minerals sector.

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 V. Promotion of International Cooperation: To guarantee the stability of the global
supply chain, the policy framework should foster international cooperation on crucial
minerals. This can be determined by monitoring participation in international forums
and the number of bilateral agreements signed with other nations.
VI. Effective Monitoring and Evaluation: Effective surveillance and evaluation should be
incorporated into the policy framework in order to track progress and identify areas
for improvement. This can be measured by tracking compliance with reporting
requirements, stakeholder participation in monitoring and evaluation, and
responsiveness to identified issues.

These evaluation criteria will assist in determining the efficacy of India's policy framework in
addressing the challenges associated with critical minerals. Regular monitoring and
evaluation of the implementation of the policy framework will be required to ensure that
the intended results are realised and that appropriate measures can be taken to address any
obstacles that may arise.

We have categorized the Policy evaluation into 3 stages: Output, Outcome and Impact.

I. Outputs: Outputs are the shot-term or immediate effects of the policy. They are the
tangible products and services that are produced as a result of the policy. The
outputs of the policy framework for critical minerals in India can be the follows:
 Increase in production of critical minerals
 Adoption of sustainable practices and technologies in critical minerals activities
 Increase in investment in critical minerals projects
 Development of local skills and knowledge in critical minerals activities
 Deployment of effective monitoring and evaluation systems

II. Outcomes: Outcomes are the medium-term or intermediate effects of the policy.
They are the changes or benefits that occur as a result of the outputs produced by
the policy. The outcomes of the policy framework for critical minerals in India can
include the following:
 Reduction in the dependence on imports of critical minerals
 Enhanced economic diversification and employment creation in the critical
minerals industry
 Reduction of environmental and social impacts of activities involving critical
minerals
 Promotion of sustainable development in the critical minerals sector
 Improvement in international cooperation on critical minerals

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 III. Impact: Impact is the long-term effect of the policy or the overall effect of the policy
on the economy, society, and the environment. The impact of the policy framework
for critical minerals in India can be the following:
 Increased availability of essential minerals for domestic industries, resulting in
enhanced economic competitiveness and decreased reliance on imports.
 Development of a resilient and sustainable critical minerals industry that
contributes to national and local economic growth and employment creation.
 Reduction of the negative environmental and social impacts of activities
involving critical minerals, leading to enhanced environmental health and social
well-being
 Promotion of responsible and sustainable mining practices that contribute to
global efforts to combat climate change and attain sustainable development
objectives.

The aforementioned policy framework for critical minerals in India has the potential to
generate significant outputs, outcomes, and impacts, thereby contributing to the
responsible and sustainable growth of the critical minerals sector in India. Regular
monitoring and evaluation will be required to ensure that the intended outcomes and
impact are being realised and to identify and address any obstacles that may arise.

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Bibliography
Rajesh Chadha, G. S. (2022, October). Critical Minerals for India: Assessing their Criticality
and Projecting their Needs for Green Technologies. CSEP Working Paper.
Calvino, A. E. (2022). What policies have governments adopted to secure critical materials? .
Global Trade Alert.
AmericanGeosciencesInstitute. (2023). Critical Resources. Retrieved from
americangeosciences.org:
https://www.americangeosciences.org/critical-issues/critical-minerals
Ganesan, V. G. (2014). CEEW Policy Brief. Policy Brief: India’s Critical Mineral Resources – A
Trade and Economic Analysis.
Rajesh Chadha, G. S. (2022). Critical Minerals for India. Centre for Social and Economic
Progress, 44.

Other Websites and Documents referred:

1. United Nations. (2018). World Population Prospects 2019. Retrieved from
https://population.un.org/wpp/Download/Standard/Population/
2. United States Geological Survey. (2021). Mineral Commodity Summaries 2021.
Retrieved from https://pubs.usgs.gov/periodicals/mcs2021/mcs2021.pdf
3. Ministry of Mines, Government of India. (2018). National Mineral Inventory.
Retrieved from
https://mines.gov.in/writereaddata/ContentFiles/NMI_2018_08082019.pdf
4. Federation of Indian Mineral Industries. (2021). Indian Minerals Yearbook 2020.
Retrieved from http://www.fimiindia.in/wp-content/uploads/2021/05/Indian-
Minerals-Yearbook-2020.pdf
5. Ministry of Mines, Government of India. (2021). National Mineral Policy 2019.
Retrieved from
https://www.mines.gov.in/writereaddata/ContentFiles/National_Mineral_Policy_201
9.pdf
6. Ministry of Mines, Government of India. (2021). Amendments in the Mines and
Minerals (Development and Regulation) Act, 1957. Retrieved from
https://www.mines.gov.in/writereaddata/ContentFiles/Amendment_in_Mines_and_
Minerals_Act_1957_English.pdf
7. https://www.iea.org/data-and-statistics/data-tools/critical-minerals-policy-tracker
8. https://businessindia.co/magazine/indias-quest-for-critical-minerals
9. https://pib.gov.in/PressReleasePage.aspx?PRID=1810948
10. https://www.ncchpp.ca/docs/ModeleEtapesPolPubliques_EN.pdf
11. https://www.globaltradealert.org/reports/103

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