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Barmer Oil Refinery To Get Rs 4,785 Crore Loan From REC, Long-Delayed Project To Be Commissioned By 2024

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Amit Mishra
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REC Limited, a Maharatna Central Public Sector Enterprise under the Union Ministry of Power, will provide a loan amounting to Rs 4,785 crore to HPCL Rajasthan Refinery Limited (HRRL) in Barmer district, Rajasthan.

HRRL is a Joint Venture company of Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan with a respective equity stake of 74 per cent and 26 per cent.

The project includes setting up of an energy efficient and environment friendly refinery cum petrochemical complex with a capacity of 9 Million Metric Tonnes per Annum (MMTA) which includes 2.4 MMTA of Petrochemical products.

Additionally it also includes crude and product storage facilities, a captive Power Plant for meeting refinery’s power and steam requirement and township and allied facilities and utilities.

The biggest project being undertaken in the oil sector in India, the Barmer Refinery will produce clean fuels such as BS-VI grade Motor Sprit (MS or Petrol) & BS-VI grade High-Speed Diesel (HSD or Diesel).

Further, the refinery will produce about 26 per cent of petrochemical products from the very beginning. It will have worlds’ largest Polypropylene Unit & Polyethylene swing unit to make more than 30 different polymer grades.

The Project will help serve the increased demand of petroleum and petrochemical products in the country and the Western, Northern and Central parts of India in particular.

Long Delay

The greenfield project in Barmer officially got off the ground on 18 September 2013, when the joint venture was incorporated. There are a total of 13 units in the oil refinery spread across 900 acres of land.

Site of Barmer Refinery

The project received government’s approval on 09 October 2017. The work commencement ceremony was carried out by Prime Minister Narendra Modi on 16 January 2018.

Union Petroleum Minister Hardeep Puri during a visit to the site in Feb 2023 said that the project will be ready by January 2024 and will be fully functional by 2024.

Cost escalation

The estimated project cost had gone up from Rs 43,000 crore in 2018 to Rs 72,937 crore.

Subsequently, in February this year, the Centre asked the Rajasthan government to bear the extra cost, which it did not seem to be “ready” to do so.

Consequently, the Union government has expressed its willingness to take on the additional cost, which would reduce the state government’s equity by 10 per cent — from 26 per cent to 16 per cent.

The latest assistance to the HRRL is part of the loan agreement under consortium arrangement for Rs 48,625 crore wherein the share of state-run REC Ltd is Rs 4,785 crore.

Infrastructure Bonanza For Four States Ahead Of Assembly Polls: Prime Minister Modi To Launch 50 Projects Worth Rs 50,000 Crore

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Amit Mishra
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Ahead of the 2024 assembly elections in Hindi heartland states, Prime Minister Narendra Modi will inaugurate and lay the foundation stones of approximately 50 projects worth around Rs 50,000 crore.

The inauguration spree will occur during the Prime Minister’s two-day tour of Uttar Pradesh, Chhattisgarh, Telangana and Rajasthan beginning Friday.

The government aims to roll out these projects in the next eight to nine months, starting this week, to showcase its achievements in infrastructure development across the country.

Presentation

Earlier last week, the infrastructure ministries presented a timeline for the inauguration and foundation stone-laying of nearly 900 projects, a Times of India report said.

These projects, with a total investment of over Rs 13 lakh crore, are planned to be completed before the model code of conduct for the 2024 general elections kicks in.

Special attention will be given to completing and inaugurating projects in states with upcoming assembly polls such as Rajasthan, Madhya Pradesh and Chhattisgarh.

The presentation revealed that while 560 projects costing approximately Rs 7.6 lakh crore will be inaugurated by February-March 2024, foundation stones for the remaining 350-odd projects with an investment of around Rs 5.6 lakh crore, will also be laid.

Of the 560-odd projects slated for inauguration, around 200 projects are ready for inauguration, with another 200 expected to be ready by the end of 2023.

Among these projects are 60-65 ‘signature projects’, which are either high-cost projects (over Rs 5,000 crore) or of strategic importance. These include Chenab Bridge, Pamban Railway Bridge, Sone Bridge, Dwarka Expressway, Ankleshwar-Baroda stretch of Delhi-Mumbai Expressway.

PM’s Tour

Prime Minister Modi’s tour will begin in Raipur, where he will lay the foundation stone and dedicate multiple projects, including the six-lane section of the Raipur-Vishakhapatnam NH corridor.

He will then proceed to Gorakhpur, where he will attend a programme at the Gita Press and flag off Vande Bharat trains on three routes. Additionally, he will lay the foundation stone for the redevelopment of the Gorakhpur Railway Station.

The Prime Minister is scheduled to visit Varanasi, where he will inaugurate and lay the foundation stone for various projects. These projects include the four-laned Varanasi-Jaunpur section of NH-56, as well as the renovation of Manikarnika Ghat and Harishchandra Ghat.

Following this, on the second day, he will proceed to Warangal in Telangana. There, he will lay the foundation stone for projects such as the Nagpur-Vijayawada corridor. Lastly, he will visit Bikaner in Rajasthan.

Adani’s Mundra Port Anchors MV MSC Hamburg, One Of The Longest Container Ships — Why It Is Significant

By
Amit Mishra
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Mundra Port, the flagship port of Adani Ports and Special Economic Zone Ltd (APSEZ), has achieved a significant accomplishment by berthing the MV MSC Hamburg, one of the largest container ships in the world.

Built in 2015, the 399 metre long and 54 metre wide container vessel, MV MSC Hamburg was anchored at the Adani Ports Mundra on 2 July 2023.

The MV MSC Hamburg, has a carrying capacity is 15,908 TEU and her current draught is reported to be 12 metre. The vessel dimension equals four football fields, APSEZ said in a statement.

“Mundra anchors one of the longest vessels. MV MSC Hamburg vessel dimension equals 4 football fields,” it said.

Interestingly, the historic event took place in the same month when the Geneva-based Mediterranean Shipping Company (MSC) and Adani International Container Terminal Pvt Ltd’s joint venture completed 10 years.

Why Large Ships

Container ships transport a combination of two standardized container sizes known as 20- or 40-feet equivalent units, abbreviated to TEUs and FEUs.

Container Ship At Suez Canal

The containers are carried in cellular holds and stacked on the ships hatch covers and upper deck. The contents of the containers can be non-perishable, or perishable, with the latter often being carried in refrigerated containers.

Container ships have grown significantly in size in over the last 20 years, in 2002 a large container ship would be able to carry approximately 6,500 TEU, today the largest containerships can now transport nearly 24,000 TEU.

The Ever Alot ultra large container vessel is the largest container ship in the world to date. Built by Hudong-Zhonghua Shipbuilding, a subsidiary of China State Shipbuilding Corporation (CSSC), the Ever Alot has a capacity of over 24,000 TEU, the first container ship to surpass the mark.

Ultra-large ships provide economies of scale, thereby reducing the per unit cost of manufactured goods for the consumer. The environmental cost is also low, with container ships emitting an average 80 per cent less carbon dioxide.

Significance

However, these vessels stretch the limits of even the world’s largest ports.

To load and unload containers, cranes must reach across the vessels. Container ships also have to turn, pass through locks and canals — including the Suez and Panama canals, which have size restrictions.

It’s crucial that vessels avoid running aground, too. In some ports, the largest ships actually sit so deep in the water that they touch the bottom and glide through the silt rather than float above it, says Stavros Karamperidis, head of the Maritime Transport Research Group at the University of Plymouth.

As such, the berthing of MV MSC Hamburg at Mundra port signifies two things — excellent port infrastructure as well as operations and efficiency.

APSEZ Mundra Team ensured and facilitated accurate predictions for the clearance required to berth the ship safely by factoring in all the complex conditions of the vessel and live weather conditions.

The significance of the achievement can be gauged by the fact that most US ports are not big enough to facilitate the largest container ships. Only a handful of ships with capacities approaching 20,000 TEUs have ever called US ports.

Also, it is not the first time that the Mundra Ports achieved such a significant feat in the maritime transport sector.

In 2021 APSEZ berthed the 13,892 TEU APL Raffles, the largest container vessel to call at any Indian port. The Singapore-registered vessel had a length of 397.88 metre and a breadth of 51 metre.

Is It All Good

Barring Mundra, the country has been unable to attract bigger container ships due to inadequate port infrastructure.

Global vessel sizes have significantly increased in the last decade, and most mainliners typically prefer calling at ports with at least 18 m draft. To that end, the availability of adequate draft has become a crucial factor in attracting shipping lines

The only exception is Mundra which is one of the deepest drafts amongst the ports in India having depth upto 17.5 m to handle dry bulk break bulk and liquid cargo.

“The existing port and terminal infrastructure in India do limit the possibility of utilising the full strength of ultra large vessels,” said AP Moller-Maersk A/S. Some factors include “the draft in the ports, cranes at terminals used for loading and unloading cargo, port throughput capacity”.

The other thing to consider, according to Maersk, which is the world’s second-largest container shipping line, was that Indian importers and exporters are spread across the country, and it is more cost and time effective to send and receive cargo through a port closer to their operations.

Samruddhi Mahamarg: Public Address System At Entry Points, Rumblers To Help Reduce Accidents

By
Amit Mishra
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Amidst spate of accidents on Samruddhi Mahamarg, the latest being on Friday (30 June) wherein 25 people lost their lives, Public address systems are being installed at nearly 60 entry-exit points of the newly opened expressway.

“The new system will appeal to drivers using the highway not to over-speed, drive cautiously, not to drive in the wrong lane etc. Since the highway is straight and does not have curves, it can make one sleep. So precautions have to be taken,” said Sanjay Yadav, the Joint Managing Director of the Maharashtra State Road Development Corporation (MSRDC).

The PAS, a combination of audio amplifier, loudspeaker and microphone, is already in place on the Mumbai-Pune Expressway.

However, due to the higher risk of highway hypnosis on Samruddhi Mahamarg, announcements will be done with specific messages about feeling sleepiness by the driver.

Highway hypnosis has emerged as the biggest cause of accidents on the Samruddhi Mahamarg, accounting for 98 accidents or 27 per cent of the total 358 accidents reported between December 2022 and April this year.

The MSRDC has elaborate plans to ensure the drivers are kept engaged through positive distractions which would not allow them to slip into highway hypnosis.

As part of this, MSRDC is installing rumblers every 25 km on Samruddhi Mahamarg. Rumble strips provide both an audible warning (rumbling sound) and a physical vibration to alert drivers, beside alerting inattentive drivers. In foggy conditions, rumble strips help drivers stay on the road.

In addition, the MSRDC is putting up colourful flags at regular intervals of every half an hour. Besides this, reflectors are also being put in place to catch the motorist’s attention and keep their brains busy and active and prevent accidents.

Furthermore, they are planting 33 lakh saplings along medians and avenues areas along the road, as shared by an official.

Samruddhi Mahamarg

Officially named ‘Hindu Hrudaysamrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg’, the 701-km-long expressway connects Mumbai and Nagpur.

The first phase of the Samruddhi Mahamarg, connecting Nagpur to the temple town of Shirdi in Ahmednagar district covering a distance of 520 km, has been in operation since December 2022, when Prime Minister Narendra Modi inaugurated it.

The second phase of Mumbai-Nagpur Samruddhi Mahamarg, an 80 km stretch between Shirdi and Bharvir village in Igatpuri taluka in Nashik district, was inaugurated on 27 May 2023 by Chief Minister Eknath Shinde and Deputy Chief Minister Devendra Fadnavis.

With this, a total of 600 km out of the 701 km of the Samruddhi Expressway is now open to the public. The remaining 100-km stretch under Phase-III, between Igatpuri and Vadpe in Thane, will be completed in the next 7-8 months.

The six-lane greenfield expressway is turning into a death trap with 358 accidents reported between December 2022 and April this year, resulting in 39 casualties over the five-month period.

The most recent incident involved a private AC sleeper bus traveling from Nagpur to Pune, which caught fire after colliding with a steel pole and road divider, resulting in the tragic death of 26 people.

However, the MSRDC has stated that the design of Samruddhi Mahamarg is not to be blamed for any of the reported accidents. The police are currently investigating the Call Detail Record (CDR) of the private AC sleeper bus driver involved in the major accident. They are trying to determine if the driver was using their phone at the time of the incident.

Also Read: Samruddhi Mahamarg: 358 Accidents, 39 Deaths In Five Months And The Big Problem Of Highway Hypnosis

Explained: Why China Has Restricted Export Of Two Minerals Gallium And Germanium Used To Make Semiconductor Chips

By
Amit Mishra
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Beijing on Monday (3 July) imposed restrictions on exports of two obscure yet crucial metals — gallium and germanium — in an escalation of the trade war on technology with the US and Europe.

Starting 1 August, the Chinese Ministry of Commerce said Gallium and germanium, along with their chemical compounds, will be subject to export controls, a move it called essential to “protect national security and interests”.

Exporters for the two metals will need to apply for licenses from the commerce ministry if they want to start or continue to ship them out of the country, and will be required to report details of the overseas buyers and their applications, it said.

While the ministry refrained from providing specific explanations for the newly imposed restrictions, an editorial in the state-owned China Daily following the announcement strongly criticized the Netherlands for its export controls on semiconductor components.

The Dutch government announced on Friday measures that will prevent ASML Holding NV — a company with a near-monopoly on the machines needed to make the most advanced semiconductors — from selling some of its machines to China.

What Are Gallium and Germanium?

Gallium and germanium are strategic elements predominantly used in electronics. Both are byproducts from processing other commodities such as coal and bauxite, the base for aluminum production.

Gallium-based compounds, such as, Gallium arsenide (GaAs) and Gallium nitride (GaN) are used in the production of semiconductors, light-emitting diodes (LEDs) and solar panels.

The largest use of germanium is in the semiconductor industry. When doped with small amounts of arsenic, gallium, indium, antimony or phosphorus, germanium is used to make transistors for use in electronic devices.

China is the world’s largest producer of the two elements, with more than 95 per cent of the global gallium output and 67 per cent of germanium production, according to the UK Critical Minerals Intelligence Centre.

Other countries that produce gallium include Japan, South Korea, Russia and Ukraine, according to the CRU Group, a metals industry intelligence provider. Germanium is also produced in Canada, Belgium, the US and Russia.

The Trigger

The export control move by China comes after the US and its allies took aggressive steps to further tighten the choke hold on China’s chip ambitions.

In January, Dutch and Japanese officials agreed in principle to join the US campaign. Together, the three countries are the world’s top sources of machinery and have the expertise needed to make the world’s most advanced semiconductors.

As part of this, ASML, the Dutch toolmaker, in a statement on 30 June said that effective September 1, it will be required to apply for a license from The Hague to ship its most advanced immersion deep ultraviolet (DUV) lithography systems, including the TWINSCAN NXT: 2000i, and more sophisticated models.

The Europe’s most valuable tech company, is already prohibited from selling its most cutting-edge technology, so-called extreme ultraviolet (EUV) lithography, to Chinese companies.

The latest tightening export restrictions by Dutch means Chinese companies will now be forced to use ASML’s lower-end equipment – NXT1980i, which can be used for 10-nm node chips.

However, this might change under further pressure from the US, with Washington expected to impose a new rule that could even put NXT: 1980Di machine out of Chinese hands.

US Impact

The Chinese export control is latest in the country’s tit-for-tat trade war on technology with the US and Europe, with Washington being “the main target”.

The Chinese government earlier this year barred companies that handle critical information from buying microchips made by the Boise, Idaho-based Micron. The company’s chips, which are used for memory storage in all kinds of electronic devices were deemed to pose “relatively serious cybersecurity problems” by China’s internet watchdog after a review.

To understand the export control imposed on gallium and germanium, we need to see how US sources these metals.

A recent report from the US Geological Survey and Department of the Interior revealed that China accounted for 53 percent of US gallium imports and 54 per cent of US germanium imports between 2018 and 2021.

The way things stand now, it is clear that the Chinese curbs could complicate the US-led efforts to shift critical supply chains away from China.

What Next

Beijing almost certainly sees these controls as a potential bargaining chip in its negotiations with Washington to roll back elements of recent export controls on semiconductors and semiconductor manufacturing equipment.

The export control action offers a glimpse of new tactics by Beijing, which is even reflected in the State-owned media with one such publication describing Beijing’s move as “just and righteous”.

“Those doubting China’s decision could ask the US government why it holds the world’s largest germanium mines but seldom exploits them,” it said. “Or they could ask the Netherlands why it included certain semiconductor-related products, such as lithographic machines, into its export control list”.

The supply chain weaponization is a “very useful reminder” of the “urgency of de-risking from China on critical resources and as such the US and EU will have to start seriously looking at alternative sources even if that means “higher costs and/or engaging in unpopular pursuits of mining and refining at home”, said Thorsten Benner, director of the Global Public Policy Institute in Berlin.

The US already has significant deposits of germanium but has strict control on its extraction.

At the same time, it is highly unlikely that export restrictions on advanced chip-making equipment would be rolled back or curtailed as President Joe Biden’s administration heads into the 2024 elections, which only exacerbates the “deglobalisation” in the semiconductor industry.

However, some are hopeful a different path forward can be established during US Treasury Secretary Janet Yellen’s first trip as secretary to China this week, with Yellen reportedly seeking to assuage economic and trade tensions between Beijing and Washington.

Gujarat: Deendayal Port Floats Global Tenders For 18 MMTPA Multipurpose Cargo Berth, To Cater To Northern India’s Hinterland

By
Amit Mishra
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In a major infrastructure upgrade, the Deendayal Port (DP) in Gujarat, will soon have a multipurpose cargo berth off Tuna Tekra at Gulf of Kutch, Kandla.

The Port authority, last week, floated global tenders to pre-qualify competent applicants who can subsequently bid for the project as per Request for Proposal (RFP) Document.

Earlier on 12 October 2022, the Union Cabinet had approved a proposal to develop the cargo berth at Tuna-Tekra under the public-private partnership (PPP) mode.

The proposed facility will be used for handling multipurpose clean cargo, including food grains, fertilisers, coal, ores and minerals, steel cargo etc.

This project is proposed to be developed on Build, Operate and Transfer (BOT) basis by a private developer, to be selected through an international competitive bidding process.

The project will have a concession period of 30 years and the implementation period for the project is reckoned as 30 months from the date of award of concession.

The Concessionaire will be responsible for the design, engineering, financing, procurement, implementation, commissioning, operation, management and maintenance of the project.

The total estimated cost of Rs 2,250.64 crore which includes Rs 1,719.22 crore to be borne by the Concessionaire and Rs 531.42 crore to be borne by the Concessioning Authority (Deendayal Port Authority).

Rationale Of The Project

Deendayal Port (erstwhile Kandla Port) is one of the twelve major ports in India and is located on the west coast of India, in the Gulf of Kutch in Gujarat. The port primarily services the northern India hinterland, including the land locked states of Jammu and Kashmir, Uttar Pradesh, Madhya Pradesh and Gujarat.

The present capacity of handling dry cargo (excluding container cargo) is 59.96 million metric ton per annum (MMTPA). As against this, dry cargo berths have handled a dry cargo of 41.65 MMT (excluding containerised cargo).

However, in view of the expected recovery in the economic growth of the country, steadily growing dry cargo traffic at Kandla and over-utilised dry cargo handling infrastructure at Kandla Port, it is felt that the additional facilities are required.

The gap between the projected traffic and allocated traffic by the year 2026 has been estimated at 2.85 MMTPA and by 2030 at 27.49 MMTPA.

As such, in order to cater to the future growth in multipurpose cargo (other than container/liquid) traffic, the authority has decided to undertake development of multipurpose cargo berth off Tuna Tekra in Gulf of Kutch within port limits.

Location of Tuna Container Terminal.

Details

The Project entails construction of an off-shore berthing structure for handling four vessels at a time with allied facilities at the cost of Rs 1,719.22 crore.

The facility shall have the capacity to handle multipurpose cargo of 18.33 MMTPA. Initially, the Project will cater to 15-metre draught vessels of 1,00,000 Deadweight Tonnage (DWT) and accordingly, the channel will be dredged and maintained by the Concessioning Authority with 15 metre draught.

However, during the concession period, the Concessionaire has liberty to handle vessels up to 18 metre draught by deepening and widening in berth pockets.

According to an official statement, development of multipurpose cargo berth off Tuna Tekra at Kandla, will give it a strategic advantage as it will be the closest container terminal serving the vast hinterland of northern part of India.

In addition to increasing the business potential of Kandla, the statement said the project will boost the economy and generate employment.

Work On 14-Km-Long Delhi Section Of Rapid Rail To Meerut On Track To Meet 2025 Deadline

By
Amit Mishra
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Work on the 14-km-long Delhi section of the Delhi-Meerut RapidX Regional Rail Transit System (RRTS) is on track to meet the deadline for the overall project.

The RRTS is a new, rail-based, dedicated, high capacity, comfortable commuter service. The country’s first RRTS which is coming up in Delhi-National Capital Region (NCR) has been named as RAPIDX. The train will cover a distance of 82 km between Delhi and Meerut in 55 minutes instead of three hours.

While at least 14 km of the 82 km corridor is in Delhi, the remaining 68km lies in Uttar Pradesh.

The Delhi section which begins at Sarai Kale Khan comprises around nine kilometers of elevated track and an additional nine kilometers of underground track. This section includes four stations: Jungpura, Sarai Kale Khan, New Ashok Nagar, and Anand Vihar.

Status

At least 70 per cent civil work has been completed on the Delhi stretch. This includes 80 per cent work of the pillars and the 4.5-km-long viaduct for the elevated section.

Further, in June, the tunnelling in the Delhi section of the Delhi-Ghaziabad-Meerut RRTS corridor was also completed.

The RRTS tunnel in Delhi section of the corridor.

Tunnel construction of the underground section in Delhi commenced in February 2022, when tunnel boring machine (TBM) Sudarshan 4.1 started tunnelling from Anand Vihar towards New Ashok Nagar.

Sudarshan 4.2 was launched soon after in April 2022 for tunnelling its parallel tunnel. These parallel tunnels are the longest tunnel in Delhi made by any TBM and are about 3 km each.

The TBN Sudarshan 4.1 made the breakthrough from the tunnel retrieval shaft constructed at Khichdipur, Delhi in just over a year in April 2023.

Sudarshan 4.2 has also completed tunnelling for its parallel tunnel and made a breakthrough recently. This marked the completion of the tunnelling in the underground section of the corridor in the National Capital.

Apart from these, two more Sudarshan, 4.3 and 4.4 were also launched from Anand Vihar for tunnelling 2-km-long parallel tunnels towards Sahibabad RAPIDX station for the Delhi-Ghaziabad section in June and October 2022, respectively.

One of these, Sudarshan 4.3 made a breakthrough from the retrieval shaft constructed near Vaishali Metro station in May 2023. The other TBM, Sudarshan 4.4 has also completed about 75 per cent of the tunnelling and will soon make a breakthrough.

Commissioning By 2025

The National Capital Region Transport Corporations (NCRTC) which is implementing the project is targeting to open the full corridor from Sarai Kale Khan to Meerut by June 2025.

Before that, it will operationalise a 17-km-long priority section between Sahibabad and Duhai Depot shortly.

The 17-km priority corridor between Sahibabad and Duhai Depot has five stations — Sahibabad, Ghaziabad, Guldhar, Duhai and Duhai Depot.

The Commissioner for Metro Rail Safety (CMRS) last week approved the start of commercial operation of RAPIDX service on the Priority Section.

Centre Unveils List Of 30 Critical Minerals: Here’s Exploring The What, Why, And How Of First Such Exercise

By
Amit Mishra
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Critical minerals are those minerals which are essential for economic development and national security, the lack of which, may lead to supply chain vulnerability and disruption.

The November 2022 expert committee was initiated to fill the policy gap, identify and develop value chains for the minerals which are critical to our country.

The Centre on Wednesday (28 June) released a list of thirty critical minerals that it considers essential for economic development and national security of the country.

The list of thirty critical minerals, was identified in a report titled “Report of the Committee on Identification of Critical Minerals” prepared by an expert team constituted by the Ministry of Mines last November.

What Is A Critical Mineral

One of the definitions cited in the report suggest that a mineral is labelled as critical when the risk of supply shortage and associated impact on the economy is (relatively) higher than the other raw materials.

This definition of a critical mineral was adopted in the US (Executive Order No.13817) and the subsequent legislation that resulted from the analysis.

The European Union (EU) also carried out a similar exercise and categorised critical minerals based on two main parameters — economic importance and supply risk.

Australia refers to critical minerals as: “metals, non-metals and minerals that are considered vital for the economic well-being of the world’s major and emerging economies, yet whose supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors”.

Put simply, the report defines critical minerals as “those minerals which are essential for economic development and national security, the lack of availability of these minerals or even concentration of existence, extraction or processing of these minerals in few geographical locations may lead to supply chain vulnerability and disruption“.

Previous Efforts

In India, some effort have been made in the past, both by the government as well as think-tanks, to identify the minerals that are critical for the country:

  • An early initiative in this direction came from the Planning Commission of India (now NITI Aayog) in 2011 which highlighted the need for the assured availability of mineral resources for the country’s industrial growth.

    The report analysed 11 groups of minerals under categories such as metallic, non-metallic, precious stones and metals, and strategic minerals.

  • In 2016, the Department of Science and Technology (DST), in collaboration with the Council on Energy, Environment and Water (CEEW), drafted the Critical Minerals Strategy for India in 2016. The study identified 13 minerals that would become most critical by 2030.
  • The Centre for Socio and Economic Progress (CSEP), another prominent public policy think tank, has worked extensively in identifying the list of critical minerals for India.

    In a recent publication, the CSEP evaluated the criticality of 43 non-fuel minerals in India based on two dimensions: economic importance for the Indian economy and supply risks.

Why A New Exercise

In November 2022, the Ministry of Mines constituted a seven-member Committee headed by joint secretary (Policy) to identify the list of minerals critical to our country.

The country needs vast amounts of these minerals for meeting its requirements for energy transition and net-zero commitments. Similarly, certain other elements are critical for progress in electronics, defence and agriculture sector.

One of the key challenges in the critical mineral supply chain lies in the global market dynamics, which can result in price volatility and supply disruptions.

However, in the absence of a list of minerals critical for the country, it has been difficult to formulate policy measures to secure the country from supply chain vulnerability of these minerals.

As such, the November 2022 exercise to form an expert committee was initiated to fill the policy gap and identify and develop value chains for the minerals which are critical to our country.

Minerals Identified

The Committee carried out a three-stage assessment for identifying the minerals critical to India.

  • In the first stage, the critical mineral strategies of various countries as well as studies by CSEP and CEEW were analysed.

    Accordingly, a total of 69 elements/minerals that were considered critical by major global economies such as Australia, USA, Canada, UK, Japan and South Korea were identified for further examination.

  • In the second stage of assessment, an inter-ministerial consultation was carried out with different ministries to identify minerals critical to their sectors. This included consultation with Ministry of Power, Department of Atomic Energy, Ministry of New and Renewable Energy, Department of Fertilisers and NITI Aayog, among others.
  • The third stage assessment was to derive an empirical formula for identifying the list of critical minerals. The committee took stock of the EU methodology that considers two major factors — economic importance and supply risk.
  • Based on the three-stage assessment process mentioned above, a total of 30 minerals have been found to be most critical for India out of which two minerals are critical as fertiliser minerals.

    The elements/minerals selected as critical (see the image below) have either high economic importance, high supply risk, or have both parameters high.

Critical Mineral list of India.

Global Efforts

Most of the countries in the world have identified critical minerals as per their national priorities and future requirements.

  • The United States Geological Survey has released a list of 50 mineral commodities critical to the US economy in the year 2022.
  • A total of 18 minerals have been identified as critical to the United Kingdom (UK) economy.
  • The European Commission, which has been issuing a list of critical raw minerals (CRM) since 2011, has identified a total of 34 raw materials as CRM in the most recent list published in 2023.
  • In March 2020, Japan identified a set of 31 minerals as critical for their economy.
  • The latest critical mineral strategy released by Australia in 2022 defines a set of 26 minerals critical for Australia.

What Next

Apart from identifying the critical minerals list, the report also recommends measures for capacity building in the emerging sector of critical minerals.

  • Establishing a ‘National Institute’ or ‘Centre of Excellence on Critical Minerals’ on the lines of Commonwealth Scientific and Industrial Research Organisation (CSIRO). CSIRO is the largest minerals research and development organisation in Australia and one of the largest in the world.
  • Creation of a Centre of Excellence for Critical Minerals (CECM) in the Ministry of Mines which will focus on identifying more efficient ways for discovering next generation critical mineral deposits through geological knowledge, data analytics and modelling, and machine learning capability.
  • Apart from this, the CECM may collaborate with other agencies for the strategic acquisition of foreign assets on critical minerals.
  • The Centre of Excellence will periodically update the list of critical minerals for India, preferably every three years, and notify the critical mineral strategy from time to time.
  • The central government should provide financial and administrative support to accelerate the development of critical mineral mining, processing, manufacturing, and recycling in the country.

Reducing Logistics Cost: Haryana Government To Set Up Two Multi-Modal Logistics Parks In Palwal, One In Ambala

By
Amit Mishra
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The Haryana state government is in the process of identifying two suitable land parcels in Palwal district and one in Ambala district to set up three multi-modal logistics parks (MMLPs) under the national corridors’ efficiency improvement component of Bharatmala Pariyojana.

This was communicated by chief secretary Sanjeev Kaushal, who was chairing a review meeting on the progress of the MMLPs in the state.

“This initiative will significantly enhance the logistics capabilities of the state, driving economic growth and attracting investments. We commend the government’s efforts in establishing a robust infrastructure network to support the logistics industry,” said the chief secretary.

Kaushal directed officers to expedite the process while engaging in discussions with Container Corporation of India Limited (CONCOR) to finalise the project.

Three MMLPs In Haryana

The Ministry of Road Transport and Highways (MoRTH) has identified 35 strategic locations across the country for the development of Multi-Modal Logistics Parks as part of the national corridors’ efficiency improvement component under the Bharatmala Pariyojana,

The identified locations are some of the highest freight movement regions in the country and a MMLP in these locations will enhance logistics efficiency across the country.

This is targeted to reduce logistics costs to 8-9 per cent of the gross domestic product (GDP). Currently, logistics account for 14 per cent of GDP — making India far less competitive on the global stage.

In line with this initiative, the National Highway Logistics Management Limited (NHLML), a 100 per cent owned special purpose vehicle (SPV) of the National Highways Authority of India (NHAI), has been entrusted with the task of developing MMLPs at these 35 locations, including three in Haryana.

The foundation stone of the country’s first MMLP at Jogighopa in Assam was laid in October 2020 and is slated to be completed by December 2023.

Reducing Freight Cost

The primary objective of these MMLPs is to facilitate seamless inter-modal freight movement by integrating various modes of transportation.

The MMLPs, equipped with inter-modal facilities for freight handling, warehouses, cold storages, and custom bonded area, will provide a one-stop solution and reduce transportation costs, inventory handling costs and substantially resolve inefficiencies present in the logistics ecosystem.

The MMLPs will offer state-of-the-art storage and warehousing solutions, along with value-added services such as custom clearances and IT services, to cater to the diverse needs of logistics stakeholders.

India Explores Potential for More Lithium Reserves in J&K, First Auction By December

By
Amit Mishra
-
0

India is actively exploring the Union Territory of Jammu and Kashmir in the hopes of discovering more lithium reserves.

Earlier in February 2023, the Ministry of Mines had announced that the Geological Survey of India (GSI) had established “lithium inferred resources” — calculated on the basis of physical and chemical study of the surface and samples — in Salal-Hamima area of Reasi District of Jammu and Kashmir.

The resources to the tune of 5.9 million tonnes (MT) have been established as part of the “Reasi Sersandu-Kherikot-Rahotkot-Darabi” mineral block, where prospecting has been ongoing since 2021-22.

According to officials, exploration activities for searching additional lithium sources is already underway in the Salal Hamima region in Jammu.

“Exploration continues in the region (Resai), and we are hopeful of positive results (more lithium finds) this year itself. This could add to our lithium resource base,” Vivek Bharadwaj, secretary, Mines Ministry said.

Auction By December

The Centre has asked the Jammu and Kashmir administration to start the auction of Lithium reserves found in Reasi, by December this year.

“We have given them the report and asked them to conduct auctions at the earliest,” Pralhad Joshi, Union Minister for Mines and Coal, said.

The Ministry is currently in the process of determining the reserve price, also known as the average selling price, for these reserves. Further, the Jammu and Kashmir administration is also in the process of appointing a transaction advisor.

The transaction advisor will offer suggestions to the government on the procedure and method of auction besides preparing the model bid document.

Lithium Criticality

Also referred to as “white gold”, lithium is a non-ferrous metal and is used in rechargeable batteries, which power not only laptops and mobile phones but also electric vehicles (EVs) — a crucial part of the world’s plan to tackle climate change.

Lithium-ion batteries offer a longer life cycle as compared to traditional lead-acid batteries.

However, the main reason for their high adoption in EVs is their high energy density. High energy density allows lithium-ion batteries to store more energy in less weight/volume, which is an ideal requirement for e-mobility applications.

Also Read: Explainer: Risks And Roadmap Of Mining Lithium Reserve Discovered in J&K

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