New Delhi, Mar 23 (BNP): G. Kishan Reddy will on Monday launch the seventh tranche of auctions for critical and strategic mineral blocks, in a move aimed at strengthening India’s mineral security and supporting emerging sectors such as clean energy and advanced technologies.
The launch will take place in the presence of Minister of State for Coal and Mines Satish Chandra Dubey, the Ministry of Mines said.
Critical minerals such as lithium, graphite, rare earth elements, tungsten, vanadium and titanium have become increasingly important amid the global shift towards clean energy and high-tech manufacturing. However, their limited availability and concentration in select geographies pose challenges to stable supply chains.
To address these concerns, the government amended the Mines and Minerals (Development and Regulation) Act, 1957 in August 2023, identifying 24 minerals as critical and strategic. The amendment empowers the Centre to auction mining leases and composite licences for these resources, while revenues are allocated to the respective state governments.
The ministry has so far conducted six rounds of auctions, successfully allocating 46 mineral blocks, indicating strong industry interest and growing investor confidence in the sector.
In the upcoming tranche, 19 mineral blocks across multiple states will be offered under mining lease and composite licence categories. These blocks include a range of minerals vital for industries such as renewable energy, fertilisers and strategic manufacturing.
Officials said recent regulatory reforms have further improved the auction framework by enhancing transparency and reducing delays in operationalisation. Changes in rules have streamlined processes such as upfront payments, performance security and issuance of letters of intent, while also allowing insurance surety bonds as an alternative to bank guarantees.
The auctions will be conducted through a transparent, online two-stage ascending forward bidding process, with successful bidders selected based on the highest revenue share offered.
