CURRENT AFFAIRS | MARCH 2026
Prelims: PLI ACC scheme Rs 18,100 Crore, KABIL restructured to NCMM, Pax Silica concept, hard carbon from stubble, BIS standards for batteries
Mains: Critical mineral security, industrial policy and self-reliance, EV ecosystem development, circular economy, net zero pathway
Judicial Services Relevance: MMDR Act 1957, Article 297 (minerals in territorial waters vest in Union), environmental clearances for mining under EIA Notification, BIS Act and product safety standards, Article 39(b) equitable resource distribution
The Critical Mineral Imperative
The global energy transition — from fossil fuels to renewable electricity, from internal combustion engines to electric vehicles, from centralised to distributed energy systems — is fundamentally a transition in mineral dependence. Lithium, cobalt, nickel, graphite, rare earth elements, and manganese are the building blocks of batteries, motors, and power electronics. India’s Ministry of Mines has identified 30 minerals as “critical” based on supply risk and economic importance, and the government’s policy response has evolved rapidly from awareness to action.
PLI Scheme for Advanced Chemistry Cell (ACC) Manufacturing
The Production-Linked Incentive scheme for ACC battery manufacturing, with an outlay of Rs 18,100 Crore, represents India’s most ambitious industrial policy intervention in the battery sector. The scheme incentivises manufacturers to establish 50 GWh of ACC manufacturing capacity in India, with incentive disbursement linked to actual production volumes and progressive value addition targets. This addresses the fundamental gap: India currently imports virtually 100% of its battery cells, assembling them domestically into battery packs but lacking the critical upstream manufacturing capability.
From KABIL to NCMM — Institutional Evolution
KABIL (Khanij Bidesh India Limited), the joint venture between NALCO, HCL, and MECL established in 2019 to acquire strategic mineral assets abroad, has been restructured into the National Critical Minerals Mission (NCMM). This institutional upgrade reflects the expanded scope of India’s mineral security ambitions — NCMM encompasses not only overseas acquisition but also domestic exploration, processing technology development, recycling infrastructure, and strategic stockpiling.
Circular Economy — Hard Carbon from Agricultural Stubble
One of the most innovative aspects of India’s battery strategy is the potential to derive hard carbon — the key anode material for sodium-ion batteries — from agricultural waste, particularly rice straw stubble. India generates over 100 million tonnes of crop residue annually, a significant portion of which is burned in Punjab, Haryana, and Uttar Pradesh, causing severe winter air pollution in the Indo-Gangetic plain. Converting this stubble into battery-grade hard carbon creates a triple dividend: solving the air pollution crisis, generating farmer income from waste, and creating a domestically sourced battery material that eliminates import dependence.
Legal Framework for Mineral Governance
The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), as comprehensively amended in 2015 and 2023, governs mineral exploration, extraction, and regulation. The 2023 amendment introduced provisions for critical mineral exploration licences, enabling the government to grant rights specifically for minerals designated as critical for national security and industrial development.
Article 297 of the Constitution vests all lands, minerals, and things of value underlying the ocean within the territorial waters or the continental shelf in the Union of India. This provision is relevant to potential offshore mineral exploration, including seabed mining for polymetallic nodules rich in manganese, nickel, and cobalt.
Environmental clearances for mining operations are governed by the EIA Notification, 2006 under the Environment Protection Act, 1986. The NGT has actively adjudicated disputes involving mining-related environmental damage, applying the precautionary principle and the polluter pays principle established in Vellore Citizens (1996).
BIS Standards and Consumer Protection
The Bureau of Indian Standards (BIS) has been developing performance and safety standards for batteries under the BIS Act, 2016. Mandatory BIS certification ensures thermal stability (preventing fires and explosions), cycle life performance, and electrical safety — critical consumer protection measures as India scales up EV adoption. These standards also serve as non-tariff barriers against substandard imports, supporting domestic manufacturing.
Net Zero 2070 and the Battery Ecosystem
India’s net zero 2070 commitment requires massive deployment of energy storage — estimated at 500 GWh by 2050 for grid storage alone, plus additional capacity for EVs. Building a domestic battery manufacturing ecosystem is therefore not merely an industrial policy goal but a climate policy necessity. The combination of PLI incentives, NCMM mineral security, BIS standardisation, and Na-ion technology development creates the framework for an integrated battery value chain — from mineral to cell to pack to application.
Source: UPSC Essentials, The Indian Express — March 2026
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