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India Launches 7th Critical Mineral Auction to Power Clean Energy Future

The Indian government, under Union Minister G Kishan Reddy, is launching the seventh auction tranche for critical and strategic mineral blocks. This initiative offers 19 blocks containing minerals like lithium and rare earth elements vital for clean energy and advanced technologies. The auction framework has been strengthened by recent regulatory reforms to ensure transparency and faster operationalization. The move aims to enhance India's mineral security and support resilient supply chains for key economic sectors.

Key Points: India's 7th Critical Mineral Auction for Clean Energy Boost

  • 19 mineral blocks on offer nationwide
  • Aims to boost clean energy & tech sectors
  • Transparent online auction process
  • Reforms streamline post-auction timelines
2 min read

Govt to launch 7th tranche of critical mineral auctions to boost mineral security

India launches 7th tranche of critical mineral auctions for lithium, rare earths to secure supply chains for clean energy and advanced tech.

"Critical minerals are pivotal for the country's economic development and mineral security. - Ministry Statement"

New Delhi, March 22

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.

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.

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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Reader Comments

P
Priya S
Good move! But I hope the government also has a strong plan for sustainable mining. We've seen the environmental cost in some areas. Development is important, but not at the cost of our forests and water sources. Let's learn from past mistakes.
R
Rohit P
Finally focusing on what matters! Lithium for EV batteries, rare earths for electronics... this is the foundation for becoming a manufacturing hub. Hope Indian companies get a fair chance against big multinationals in these auctions.
S
Sarah B
The insurance surety bond alternative to bank guarantees is a smart reform. It will help smaller, serious players participate. The key is execution - these blocks need to become operational quickly to meet the demand.
V
Vikram M
Revenue going to state governments is excellent. It will boost local economies and infrastructure. But the centre must ensure strict monitoring so that the funds are used for development and not misused. Jai Hind!
K
Karthik V
While the intent is good, I'm concerned about the "highest percentage of value" quote model. Could this lead to aggressive, unsustainable bidding and later corner-cutting on safety and environmental norms? The policy needs built-in safeguards.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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