On Tuesday, the Mines Ministry announced that it will soon introduce an incentive scheme aimed at promoting the domestic processing of lithium and nickel. The initiative seeks to support the creation of an integrated critical mineral value chain in India and reduce dependence on imported processed materials, Mines Secretary Keshav Chandra said at the 60th Annual General Meeting of the Federation of Indian Mineral Industries (FIMI). Chandra added that the government has cleared proposals for setting up critical mineral processing parks in Gujarat, Maharashtra, Odisha and Andhra Pradesh, and that the states have identified mineral sources, processing methods and downstream industries that could be developed around the proposed parks.

Shares of Neogen Chemicals, NMDC, Vedanta, Hindustan Copper and GMDC are likely to be in focus on Wednesday, September 23, after the Mines Ministry said it would soon introduce an incentive scheme for lithium and nickel. Neogen Chemicals, through its subsidiary Neogen Ionics, is developing capacity for lithium electrolyte salts, additives and electrolytes, with a planned capacity of 30,000 MT of electrolytes and 3,000 MT of lithium electrolyte salts and additives at its Pakhajan facility in Gujarat. This direct exposure to the lithium‑to‑battery‑materials value chain makes Neogen a potential beneficiary of the upcoming scheme, although the actual benefit will depend on the scheme’s final details.

Vedanta could also be in focus given its direct nickel exposure through Nicomet, which the company describes as India’s sole primary nickel producer. Vedanta’s portfolio includes critical‑mineral blocks covering resources such as lithium, cobalt, rare earth elements, tungsten, vanadium and manganese. The government’s proposed incentives for domestic nickel and lithium processing could therefore add to investor interest around Vedanta’s critical‑minerals strategy, as the scheme targets the very minerals the company already produces.

NMDC, a state‑owned miner expanding beyond iron ore into critical minerals and rare earth elements, could see its shares in focus as its broader critical‑minerals strategy aligns with the government’s efforts to build domestic processing capabilities. While the linkage to the current lithium‑nickel scheme is broader than Neogen’s lithium exposure or Vedanta’s nickel operations, NMDC’s diversification into critical minerals positions it to benefit from any incentives that support domestic processing of these materials.

GMDC could remain in focus amid the broader critical‑minerals push, particularly because of its rare‑earth development plans in Gujarat. The government has cleared a critical‑mineral processing park in Gujarat, with the state’s identified focus on rare‑earth permanent magnets rather than the lithium/nickel processing covered by the new incentive scheme. Thus, GMDC represents a broader thematic play rather than a direct lithium/nickel read‑through.

Chandra also flagged concerns over mining blocks that have not begun operations even after auctions, receipt of statutory clearances and execution of mining leases, referring to the practice as "squatting". He urged FIMI members to address the issue seriously, stating that the government was not comfortable with companies holding on to mining blocks without commencing operations. The secretary highlighted that some companies secure a mining block, obtain all clearances, sign the lease, yet operationalisation has still not commenced, and this practice is a matter of concern for the government.