The ministry of mines will soon launch the sixth Tranche of auctions for critical and strategic minerals. Alongside this, the ministry will also announce the preferred bidders for seven deep-seated and critical mineral blocks auctioned under Tranche I of Exploration Licenses.
New Exploration License Regime
To accelerate mineral exploration, the government amended the Mines and Minerals (Development and Regulation) Act, 1957, introducing auction-based Exploration Licenses (ELs) for 29 critical and deep-seated minerals listed in the Seventh Schedule. This new regime enables private sector participation to explore minerals such as lithium, copper, silver, diamond, and gold. Under this framework, license holders can conduct reconnaissance and prospecting to identify mining prospects and receive a share of revenue from the auction premium for 50 years.
Progress Under Tranche I
The government successfully completed the auction of seven deep-seated and critical mineral blocks under Tranche I, following the Notice Inviting Tender (NIT) issued on March 13, 2025 for 13 EL blocks. These blocks contain valuable resources, including gold, copper, lead, zinc, rare earth elements, and platinum group minerals, spread across six states: Andhra Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, and Rajasthan.
Strengthening India’s Critical Mineral Security
The Mines and Minerals (Development and Regulation) Amendment Act, 2023 empowered the Central Government to auction mining leases and composite licenses for 24 critical and strategic minerals. This initiative aims to secure essential resources needed for energy transition, clean technologies, and high-tech industries.
Track Record of Auctions
So far, the ministry has completed five tranches of auctions, covering 55 critical and strategic mineral blocks across multiple states, with 34 blocks successfully auctioned. The revenue generated from these auctions will accrue directly to the respective state governments, strengthening both resource security and local development.
Paving the Way Forward
As reported by psuconnect.in, with the launch of the sixth tranche, the Ministry of Mines is reinforcing India’s commitment to self-reliance in critical minerals and building a strong foundation for the country’s future in clean energy, manufacturing, and strategic sectors.
