Blue Corridors, Green Power- India’s Next Resource Frontier
The Union Budget strengthens Water and Earth Sciences by securing critical minerals, expanding inland waterways, promoting deep-sea fishing and clean energy, and unlocking the blue economy to support sustainable growth, energy resilience and strategic resource independence.
Critical Minerals Processing: Building Strategic Autonomy
Policy Measure
- Basic Customs Duty (BCD) exemption on capital goods for domestic processing of critical minerals
Target Minerals
- Lithium – batteries, energy storage
- Cobalt – electronics, batteries
- Nickel – stainless steel, battery alloys
- Graphite – batteries, lubricants
- Rare Earth Elements – magnets, electronics
- Platinum Group Metals – catalysts, advanced electronics
- Copper – electrical and electronic applications
- Tungsten – hard materials, electronics
Strategic Importance
- India currently imports:
- 100% of lithium and cobalt
- Over 95% of nickel and rare earth elements
- Domestic processing:
- Reduces geopolitical and supply-chain vulnerability
- Enables downstream value addition
- Creates skilled employment
- Supports EVs, renewables, electronics and defence manufacturing
Ecosystem Integration
- Linked with Rare Earth Corridors in:
- Odisha
- Kerala
- Andhra Pradesh
- Tamil Nadu
Energy Security Initiatives: Nuclear, Renewables and Circular Energy
Nuclear Power
- Extension of BCD exemption on imports for nuclear power projects till 2035
- Applicable to all nuclear plants, irrespective of capacity:
- Heavy Water Reactors
- Pressurised Heavy Water Reactors (PHWRs)
- Fast Breeder Reactors
- Small Modular Reactors (SMRs)
Energy Impact
- Current nuclear capacity:
- 6.8 GW (~3% of electricity generation)
- Target:
- 22.5 GW by 2031
- Benefits:
- Zero operational carbon emissions
- Reliable base-load power
- Long-term energy security
Renewable Energy Support
- BCD exemption extended to:
- Lithium-ion cells for Battery Energy Storage Systems (BESS)
- Sodium antimonate for solar glass manufacturing
- Impact:
- Grid-scale energy storage
- Renewable integration
- Support for India’s 500 GW renewable target by 2030
Biogas-Blended CNG
- Exclusion of biogas value from Central Excise duty calculation
- Outcomes:
- Promotion of circular economy
- Agricultural waste utilisation
- Methane emission reduction
- Rural income generation
- Decentralised clean energy production
Fishing Beyond Territorial Waters: Unlocking the Blue Economy
Tax-Free Fish Catch
- Zero duty on fish harvested by Indian-flagged vessels in:
- Exclusive Economic Zone (EEZ)
- High seas
Export Facilitation
- Fish landings at foreign ports treated as exports of goods
Safeguards and Sustainability
- Vessel tracking systems
- Catch documentation and traceability
- Port state control measures
- Prevention of IUU (Illegal, Unreported, Unregulated) fishing
- Species identification and quota compliance
Economic Potential
- India’s EEZ area: 2.37 million sq km
- Estimated deep-sea fishing potential:
- 1.4 million tonnes annually
- Benefits:
- Blue economy expansion
- Higher export earnings
- Coastal employment
- Improved protein security
National Waterways: Expanding Inland Blue Corridors
Expansion Plan
- Development of 20 new National Waterways by 2030
First Priority: National Waterway–5 (Odisha)
- Connectivity:
- Talcher–Angul coalfields
- Kalinga Nagar industrial hub
- Ports of Paradeep and Dhamra
Strategic Benefits
- Lower logistics and transportation costs
- Environmentally sustainable freight movement
- Regional industrial development
- Employment generation in eastern India
Capacity Building
- Establishment of Regional Centres of Excellence
- Training for:
- Inland waterways engineering
- Vessel operations
- Logistics management
- Environmental monitoring
Coastal Cargo Promotion Scheme
Target
- Increase inland waterways and coastal shipping share:
- From 6% to 12% by 2047
Scheme Components
- Modal shift incentives from road and rail
- Port and terminal infrastructure development
- Support for vessel acquisition
- Technology upgrades for navigation and cargo handling
Benefits
- Reduced logistics costs
- Lower emissions per tonne-km
- Decongestion of highways and rail networks
Ship Repair Ecosystem: Inland Waterways Focus
Locations
- Varanasi
- Patna
Infrastructure Focus
- Maintenance and repair facilities for inland vessels
- Availability of spare parts and components
- Docking and servicing infrastructure
Skill Development
- Marine technicians
- Mechanical and electrical specialists
- Welding and fabrication workforce
Employment Impact
- Strengthening local riverine economies
- Skilled job creation along inland waterways
By integrating minerals, waterways, fisheries and clean energy, the Budget positions water and earth sciences as strategic pillars of India’s economic resilience and long-term sustainability.
– Venkata Somaraju G
