PHDCCI bets on creating exclusive Department for Critical Minerals

The PHD Chamber of Commerce and Industry (PHDCCI) held a session where suggestions were made regarding the creation of an exclusive Department for Critical Minerals.

Anil Chaudhary, Senior Member, Minerals & Metals Committee, PHDCCI, and former Chairman, SAIL, suggested the creation of an exclusive Department for Critical Minerals since the value chain requires a holistic approach and inter-ministerial coordination; considering stockpiling and keeping buffer inventories as done by the US in the oil & gas sector; incentivising the private sector for investing in critical mineral exploration and processing; and reducing bureaucratic hurdles.

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The remarks came during PHDCCI’s Brainstorming Session on “Critical Minerals: Way Forward to Overcome Global Supply Chain Uncertainties”. At the session, eminent experts gave their suggestions for circumventing global supply chain uncertainties in the critical minerals segment.

Chaudhary complimented the Central Government for identifying 30 critical minerals and strongly advocated for the inclusion of coking coal in the list of critical minerals since India has been importing 90 per cent of the coking coal requirement worth USD 15 billion every year, which is likely to double in the next 10-12 years.

He informed that critical mineral supplies are susceptible to trade and geopolitical problems, and hence India should forge mineral diplomacy with smaller countries that are rich in critical minerals to form strategic partnerships. Such countries could be Congo, Mozambique, and even Afghanistan and Latin American countries, he said, to reduce India’s dependence on China.

At the session, Assistant Secretary General, PHDCCI, Shalini Sharma, delivered the welcome address and said that Critical minerals are vital for India’s economic development, national security, and clean energy transition, serving as essential components for technologies like solar panels, wind turbines, and electric vehicles.

“Securing a stable supply is crucial for achieving India’s renewable energy goals, advancing its defence and technological sectors, and ensuring food security.”

At the session, Sandeep Hamilton, Founder & Chairman, Critical Minerals Association of India, emphasised the need to “Collaborate Globally and Secure Nationally” to reduce dependence on China, highlighting that critical mineral security rests on managing the 3Gs: Geology, Geopolitics, and Geo-governance.

Deepak Bhatnagar, Secretary General of the Pellet Manufacturers’ Association of India, called for a mission-mode approach for critical minerals development, similar to Mission Agni initiated by Dr A P J Abdul Kalam, focusing on the entire value chain from exploration and processing to commercialisation and marketing as successfully implemented by China.

Abhinav Sengupta, Associate Director, PwC, stressed the importance of investing in processing capabilities, noting China’s dominance in this segment. He added that the energy transition is highly mineral-intensive, with offshore wind (7x), EVs (6x), and solar/onshore wind (2-3x more than fossil fuels), making self-reliance in critical minerals essential for India’s energy future.