The Indian government has introduced a new policy framework to facilitate joint ventures (JVs) in the mining and minerals sector, aiming to boost domestic resource development, reduce import dependence, and attract both domestic and foreign investment into critical mineral exploration and extraction. This initiative, spearheaded by the Ministry of Mines and supported by the Mineral Exploration and Consultancy Limited (MECL) and the Geological Survey of India (GSI), focuses on unlocking the country’s vast reserves of minerals such as lithium, cobalt, nickel, rare earth elements, bauxite, copper, and graphite, which are vital for energy transition and high-tech manufacturing.

Under the new framework, the government allows joint ventures between Indian mining companies and global firms for the exploration, extraction, processing, and value addition of key minerals. JVs will benefit from ease of clearances, land access support, and financial incentives through schemes like the National Mineral Exploration Trust (NMET) and the Production-Linked Incentive (PLI) for Critical Minerals. The policy permits 100% foreign direct investment (FDI) in mining and mineral separation activities through the automatic route, while ensuring compliance with environmental and land-use regulations. Special preference is given to ventures involving technology transfer, green mining techniques, and domestic value chain creation.

Additionally, the framework encourages the formation of joint ventures for mineral recycling, strategic reserves development, and overseas resource acquisition in mineral-rich countries. These ventures are expected to strengthen India’s industrial base, enhance self-sufficiency in raw material supply for sectors like EVs, electronics, defense, and renewables, and make India a global player in mineral processing and trading. With this forward-looking framework, the government aims to create a transparent, investor-friendly, and sustainable ecosystem for mineral development through collaborative ventures.