Boosting Domestic Production: Government Lowers Royalty Rates on Key Minerals

The Indian government has approved the reduction of royalty rates on graphite, caesium, rubidium, and zirconium to enhance domestic production and lessen import dependence. This move is expected to promote mineral block auctions and strengthen national energy and supply chain security, impacting sectors like electric vehicles and electronics.

The Indian government has moved to fortify its mineral sector by approving a reduction in royalty rates for graphite, caesium, rubidium, and zirconium. The decision, taken under the aegis of Prime Minister Narendra Modi, aims to not only boost domestic production but also cut down on costly imports.

Information and Broadcasting Minister Ashwini Vaishnaw highlighted that the high royalty rates imposed on these critical minerals needed revision. The Cabinet's decision is positioned to unlock mineral blocks, facilitating auctions that will also encompass critical minerals like lithium and tungsten, thereby enhancing the nation's energy and supply chain security.

Graphite and zirconium's applications in electric vehicle batteries and various industries underline their importance. The government's focus on increasing indigenous production of these minerals is expected to lower import dependence, reduce supply chain vulnerabilities, and create job opportunities across strategic and electronic sectors.

(With inputs from agencies.)