Niti seeks exploration, regulatory reforms to boost metals and ores trade

Niti Aayog cites dependence on critical mineral imports and the sector's exposure to the EU's carbon border levy while recommending exploration and regulatory reforms

Niti Aayog on Wednesday recommended that India strengthen its mineral exploration ecosystem, improve compliance with the Carbon Border Adjustment Mechanism (CBAM) and introduce regulatory reforms to help the metals and ores sector become more competitive.

In the iron and steel sector, India’s trade exposure stands at 39.3 per cent, indicating that nearly two-fifths of its steel exports are destined for the EU, while the share for aluminium is 15.6 per cent, the think tank said in its Trade Watch Quarterly report, which included a thematic analysis of the metals and ores sector.

The Aayog recommended that the government improve access to renewable energy, establish more uniform renewable energy open-access norms, increase renewable energy banking and rationalise wheeling and cross-subsidy charges for group captive projects.

Niti’s chief executive officer, Anurag Jain, said several steps were already being taken on decarbonisation by the steel ministry, which should help companies comply with the CBAM.

Last week, the BRICS New Delhi Declaration expressed opposition to unilateral, punitive, discriminatory and protectionist measures that were not in line with international law, such as carbon border adjustment mechanisms. It also expressed concern that such measures undermine efforts by countries, particularly developing countries, to address the adverse effects of climate change and increase adaptive capacity and resilience.