SDG 9: Industry, Innovation & Infrastructure | SDG 7: Affordable & Clean Energy
Institutions: Ministry of Mines | Ministry of Petroleum & Natural Gas
Hindustan Copper Limited (HCL) and Oil India Limited (OIL) have signed a Memorandum of Understanding (MoU) to collaborate in the exploration and development of critical and strategic minerals, notably copper and related minerals. HCL, a Miniratna PSU under the Ministry of Mines, is already engaged in mining, processing, and marketing of copper and its derivatives. OIL, a Maharatna PSU under the Ministry of Petroleum & Natural Gas, is diversifying beyond oil & gas into mineral exploration. The partnership is aligned with the Government of India’s National Critical Mineral Mission and is seen as a step toward enhancing India’s mineral security, supporting growth in technology and industrial sectors, and reducing dependence on imports.
By enabling PSUs in energy and mining sectors to jointly venture into critical minerals, this collaboration can help India build domestic capacity for minerals essential to clean energy, electronics, and strategic industries. It could also foster integrated investment models, reduce import vulnerability, and encourage policy coordination across ministries.
The Government of India classifies Central Public Sector Enterprises (CPSEs) into tiers that define their autonomy:
Maharatna: The top tier. Large CPSEs with very high turnover and net worth; can invest up to ₹5,000 crore in a project without approval.
Navratna: Mid-tier. Strong CPSEs with good performance; can invest up to ₹1,000 crore in projects independently.
Miniratna: Entry tier (Category I & II). Profitable CPSEs; can invest up to ₹500 crore (Cat I) or ₹300 crore (Cat II) depending on their net worth.
These statuses grant PSUs increasing levels of financial and operational autonomy, with Maharatna > Navratna > Miniratna in hierarchy.
Relevant Question for Policy Stakeholders:
How can the government structure incentives, regulatory frameworks, and private sector participation to scale up critical mineral exploration through such joint ventures?
Follow the full news here: Press Release – PIB