KABIL SET UP TO ENSURE SUPPLY OF CRITICAL MINERALS

Prelims level : Economics- Resources, Industries Mains level : GS-III- Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth
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Why in News?

  • A joint venture company namely Khanij Bidesh India Ltd. (KABIL) is to be set up to ensure a consistent supply of critical and strategic minerals to Indian domestic market.
  • It would also help in realizing the overall objective of import substitution.

Khanij Bidesh India Ltd. (KABIL):

  • A joint venture company namely Khanij Bidesh India Ltd. (KABIL) is to be set up with the participation of three Central Public Sector Enterprises namely, National Aluminium Company Ltd.(NALCO), Hindustan Copper Ltd.(HCL) and Mineral Exploration Company Ltd. (MECL).
  • The equity participation between NALCO, HCL and MECL is in the ratio of 40:30:30.
  • The KABIL would carry out identification, acquisition, exploration, development, mining and processing of strategic minerals overseas for commercial use and meeting country’s requirement of these minerals.
  • The sourcing of these minerals or metals is to done by creating trading opportunities, G2G collaborations with the producing countries or strategic acquisitions or investments in the exploration and mining assets of these minerals in the source countries.
  • The new company will help in building partnerships with other mineral rich countries like Australia and those in Africa and South America, where Indian expertise in exploration and mineral processing will be mutually beneficial bringing about new economic opportunities.

Significance:

  • The sustained source of mineral and metal commodities is imperative for the transportation and manufacturing segment. R Recalling the commitment at the UN Climate Change Conference, Pairs, 2015, where India has pledged to reduce greenhouse gas emissions and opting a greener mode of transportation by emphasizing upon Electric Vehicle Mobility.It is therefore important to ensure energy storage through batteries.
  • Among such twelve minerals identified as strategic minerals, which have meagre resource base, Lithium Cobalt are significant.
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