The government announced the auctioning of eighteen critical and strategic mineral blocks, collectively valued at approximately ₹30 trillion, marking the second tranche of such auctions. Among the minerals up for grabs are graphite, tungsten, vanadium, rare earth elements, nickel, potash, and cobalt, among others.
Pralhad Joshi, union minister for coal and mines, highlighted the significance of this move, noting that it marks the commencement of potash mining in India, particularly in Hanumangarh and Bikaner, Rajasthan, which holds two potash blocks. The development is anticipated to benefit Indian farmers by reducing dependence on imports and saving foreign exchange.
The auction includes seventeen blocks for the grant of composite licences and one block for the grant of a mining lease, spanning across Andhra Pradesh, Arunachal Pradesh, Chhattisgarh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Tamil Nadu.
The government’s initiative to auction these mineral blocks follows the first tranche launched in November 2023, which received fifty bids from various entities. Notably, top bidders in the first tranche included Jindal Power, Coal India, Vedanta, and Dalmia Group. Results for the first tranche are anticipated in mid-April.
Under the Mineral Laws (Amendment) Act, 2021, the government is empowered to notify eligible entities, including private ones, to undertake mining operations. In total, the government has identified 100 blocks of critical minerals.
As reported by Financial Express, the revenue generated from these auctions, along with subsequent royalty payments, will accrue to the respective states. This marks a significant step towards enhancing domestic mineral exploration and production, fostering self-reliance, and reducing import dependency.
