New Delhi [India], August 13 (ANI): The Parliamentary Standing Committee on Coal, Mines and Steel has recommended a series of measures to strengthen Khanij Bidesh India Limited (KABIL) and make India’s overseas critical minerals acquisition strategy more effective.
It includes strengthening KABIL’s capital base and manpower, institutionalising faster decision-making, expanding private sector participation and building domestic processing and recycling capabilities.
Khanij Bidesh India Limited (KABIL) was constituted as a JV Company between three Government Enterprises, NALCO, HCL & MECL, under the Ministry of Mines to ensure a consistent and secure supply of critical and strategic minerals.
In its report titled “KABIL: India’s quest for Global Critical Minerals”, the Committee said KABIL’s ability to compete in the global critical minerals market would depend not only on acquiring overseas assets but also on developing the financial, technical and institutional capacity required to convert such opportunities into commercially viable projects.
The panel recommended that the Ministry of Mines take expeditious measures to strengthen KABIL’s capital base and prepare a roadmap for its long-term financial sustainability, including a clear timeline for revenue generation from overseas projects.
The Committee also flagged manpower constraints at KABIL and recommended priority to strengthening its human-resource base with specialised technical, commercial and legal expertise. It further called for periodic performance audits of KABIL by NITI Aayog, the Comptroller and Auditor General or a third-party auditor.
On overseas acquisitions, the panel stressed the need for a clearly defined implementation roadmap with measurable milestones and periodic review of KABIL’s progress against the National Critical Mineral Mission targets. It recommended country-wise monitoring of acquisitions, long-term offtake arrangements and timelines for converting strategic engagements into commercially operational projects.
The Committee also sought stronger coordination among ministries and public sector enterprises involved in overseas mineral acquisitions. It recommended a comprehensive coordination framework and a dedicated Project Monitoring and Coordination Cell within the Ministry of Mines.
“The country requires a more institutionalized and time bound coordination framework to facilitate faster decision making and effective execution,” the Committee said.
The panel further recommended institutionalising the consortium model involving Central Public Sector Enterprises, with clearly defined governance structures and rapid approval mechanisms so that commercially viable overseas opportunities are not lost due to procedural delays.
A major thrust of the report is on moving beyond the acquisition of mineral assets to processing, refining and recycling. The Committee observed that India’s long-term strategic objectives cannot be achieved through upstream acquisition alone and called for greater domestic capacity in downstream processing and refining.
“The real economic and strategic value of critical minerals lies in downstream processing, refining, recycling, and the production of high value materials,” it said.
The Committee recommended an integrated value-chain approach covering exploration, mining, beneficiation, refining, chemical processing, recycling and recovery. It also called for a national roadmap with defined recovery targets for critical minerals from end-of-life batteries, electronic waste and industrial scrap.
On demand-side linkages, the panel said the success of overseas acquisitions would depend on assured domestic demand and market linkages. It recommended a structured framework to engage prospective domestic offtakers and develop long-term demand projections.
“The success of overseas mineral acquisition efforts would depend not only on securing mineral assets but also on establishing assured domestic demand and market linkages,” the Committee said.
The panel also recommended encouraging greater private sector participation in exploration and acquisition of overseas critical mineral assets, while asking the government to facilitate financing and risk-mitigation mechanisms.
For rare earth elements, the Committee recommended that KABIL develop a dedicated, adequately resourced acquisition pipeline, with particular emphasis on magnetic rare earths such as neodymium, praseodymium, dysprosium and terbium.
The report also called for India to leverage multilateral and bilateral critical-mineral platforms more effectively by mapping their tangible outcomes in areas such as asset identification, co-financing and technology transfer.
The committee’s recommendations seek to transform KABIL from an overseas mineral acquisition vehicle into a stronger, commercially competitive instrument integrated with India’s broader critical minerals value chain, from exploration and acquisition to processing, recycling and domestic consumption. (ANI)
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