India’s mines ministry is increasing monthly audits of auctioned mine operations and unveiling new incentives for domestic lithium and nickel processing, as part of its efforts to accelerate mineral output and build a resilient electric vehicle supply chain.
India’s mines ministry is stepping up monthly checks on the pace at which auctioned mines actually begin production, after officials raised concerns that some operators are sitting on clearances and signed leases without starting work. Mines secretary Keshav Chandra told the Federation of Indian Mineral Industries in New Delhi that the delay is affecting the country’s mineral wealth and weakening output, according to Business Standard.
Chandra said the review now covers every stage in the approval chain, from forest and environmental permissions to state-level consent, before a lease is finally executed. Even after that process is complete, he said, some projects still fail to move into operation within the time allowed under the law. The ministry wants industry participants to treat the issue seriously, particularly because mining remains a long and highly regulated process before production can begin.
At the same event, Chandra said the government expects to soon unveil incentive schemes for processing lithium and nickel, two minerals central to India’s push to strengthen its clean energy and electric mobility supply chains. He said the Ministry of Heavy Industries has already floated two related schemes and that the mines ministry will follow with its own programme shortly, signalling a wider policy effort to build domestic processing capacity and reduce reliance on imports.
Reports earlier this year suggested the proposed support could include capital subsidies for eligible projects, potentially over several years, as India looks to encourage investment in refining and processing infrastructure. Industry publications have also reported that the government has approved critical mineral processing parks in several states, underlining its broader aim of building a more integrated critical minerals value chain.
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