New Delhi, April 9 India's diversification of energy sources and enhanced access to critical minerals are crucial for the country's economy, but this shift has introduced new challenges, Tata Steel CEO and Managing Director T V Narendran said on Thursday.
Addressing the AIMA Leadership Conclave, Narendran termed India's energy and critical minerals diversification move as a "layered vulnerability".
"The challenge is obvious while we are diversifying our sources of energy and critical minerals, and we must; this diversification is also a layered vulnerability, not just dependence on imports but also dependence on political goodwill that allows these imports to flow," he said.
He further noted that this decade began with the pandemic, an enormous disruption that forced governments to act swiftly, spurred rapid advances in science and pushed businesses and societies to adapt and find ways to cope.
Referring to the Covid-19 crisis, he said the pandemic was followed by a succession of shocks – fractured global supply chains, the Russia-Ukraine conflict and the resulting energy and commodity volatility, rising trade barriers, sharper technology controls and in the recent West Asia crisis, there were growing disruptions in key shipping routes.
Narendran, who is also the President of All India Management Association (AIMA), said there is a real opportunity for India and the country can strengthen its position significantly as the world is looking for trusted partners, diversified supply chains and a stable growth market.
"The opportunity for India is not only to make itself but also to sell to the world. The real test is to be good enough to be able to do that," he said.
India is actively diversifying its sources of energy and critical minerals to include large-scale solar and wind, hydro, nuclear, biofuels, gas, and green-hydrogen projects.
In parallel, India has identified about 30 minerals as critical – such as lithium, cobalt, and rare earths – and has launched the National Critical Mineral Mission to boost domestic exploration, streamline mining regulations, and encourage overseas acquisitions and processing capacity.
Critical minerals are those essential for modern economies and national security, especially for clean-energy technologies, defence systems and advanced electronics.
They include metals and non-metals such as lithium, cobalt, rare earth elements (REEs), nickel, copper, graphite, gallium, germanium, titanium, tungsten and many others that are used in batteries, solar panels, wind turbines, semiconductors and high-performance magnets.
Global demand for critical minerals is rising sharply as countries push the energy transition and digitalisation.