Business News | Govt to Launch 7th Tranche of Critical Mineral Auctions to Boost Mineral Security

New Delhi [India], March 22 (ANI): Union Coal and Mines Minister G Kishan Reddy will launch the 7th Tranche of Auction of Critical and Strategic Mineral Blocks on Monday, according to a statement.

Critical minerals are pivotal for the country's economic development and mineral security. The global transition towards clean energy and advanced technologies has significantly increased the demand for minerals such as lithium, graphite, rare earth elements (REE), tungsten, vanadium, titanium and other rare metals. Their limited availability and geographical concentration pose challenges to resilient supply chains worldwide.

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Recognising their strategic importance, the Government of India amended the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) on August 17, 2023, notifying 24 minerals as Critical and Strategic Minerals.

This amendment empowers the Central Government to auction Mining Leases and Composite Licences for these minerals. The revenue generated from these auctions accrues to the respective State Governments, the statement added.

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So far, the Ministry of Mines has successfully launched six tranches of auctions, with 46 critical and strategic mineral blocks already auctioned, reflecting strong industry participation and growing confidence in India's mineral sector.

Building on this momentum, the Seventh Tranche will offer 19 blocks across several States under Mining Lease and Composite Licence. These blocks comprise a diverse basket of minerals essential for sectors such as clean energy, advanced technologies, fertilizers and strategic industries, the release further stated.

The auction framework has been progressively strengthened to ensure transparency, efficiency and faster operationalisation of mineral blocks.

Recent reforms, including the Mineral (Auction) Second Amendment Rules, 2025, have streamlined post-auction timelines such as submission of performance security, upfront payment and issuance of Letter of Intent. Additionally, the Mineral (Auction) Amendment Rules, 2026, have introduced the provision of Insurance Surety Bond as an alternative to bank guarantees, enhancing flexibility for bidders.

The auction will be conducted online through a transparent two-stage ascending forward auction process, wherein the successful bidder will be selected based on the highest percentage of value of mineral dispatched quoted, the statement added. (ANI)

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