India relies heavily on imports to meet its requirement for critical minerals like Lithium, Niobium and Rare Earth Elements (REE). These minerals find application in new-age technologies like electric vehicles, pharmaceuticals, and defence manufacturing.
India in February last year found its first lithium deposits in Jammu and Kashmir with estimated reserves of 5.9 million tonnes. In July, 2023 India tweaked its mining rules by allowing the entry of private miners to search for the materials.
The Union Minister for Coal and Mines formally launched the 4th Tranche e-auction of Critical Mineral. In this tranche, 21 critical mineral blocks will be auctioned. Of these blocks, 11 are fresh blocks in states, including Arunachal Pradesh, Jharkhand, Karnataka.
Speaking at the event, Union Minister Reddy said the reforms that took place in 2015 in the mining and mineral sector is showing benefits. He also assured that in every 15 days there will be reform in the mining sector.
The government received 56 physical bids and 56 online bids for 18 of the 20 blocks offered during the first tranche of the auction, which began on November 29, 2023.
However, the auction for 13 of the 20 blocks was cancelled due to a lukewarm response. Seven of these cancelled blocks were re-notified for auction in the third round.
India has been auctioning critical mineral blocks since November as part of efforts towards a clean energy transition. On Friday, the government annulled 14 out of 18 blocks in the second tranche due to a lack of bids.
India also plans to auction its first tranche of 10 offshore critical minerals blocks in next 100 days.
(with agency inputs)
