Government To Auction 20 Precious Mineral Blocks After The General Elections

The secretary of mines  V. L. Kantha Rao informed on Monday that the auction of critical mineral blocks is gaining momentum. The government will put on sale around 20 critical mineral blocks in the fourth round of auction by the end of June. He further said that the process for seven blocks put on sale during the first round is almost completed and the result for the same would be declared in a month.

What are Critical Minerals and their Auction?

Critical minerals are those minerals that are an essential resource for the future ahead that will play a key role in the economic development of the country. The Government of India has identified 30 of these minerals and has created a legal framework for their mining in the country. The blocks of 20 of these critical minerals are on auction in the first round for commercial mining by the private sector. These mineral blocks contain lithium ore which can be used in batteries and electric vehicles.

What has been done till now?

In the first round, the government auctioned 20 blocks but later it cancelled 13 of them by stating that,” The e-auction process for 13 mineral blocks was annulled vide notification dated 13 March 2024, wherein no bids were received for two blocks and less than three technically Qualified Bidders (TQB) were there for 11 blocks.” The second round of auction of six blocks has been completed as per schedule. Recently the government also launched the third round of auction of critical minerals.

What does the Secretary of Mines say?

V.L. Kantha Rao, The Mines secretary has said that they will start with the fourth round of auction by the end of June. He further said ” When it comes to mining, we have done a lot of auctions. We have put 38 blocks of critical minerals on auction. We are going to come up with the next auction at the end of June so this auction process will continue.” He also said that there is enough supply available for these blocks and they want industry to come up and bid for these blocks.

Conclusion: The government is focusing on the exploration of critical mines at the highest levels now. The Centre has launched an auction of 38 critical minerals to date and the process is expected to continue ahead with the fourth round of auction taking place after the general elections in June end. These critical mining blocks are thereby important for national economic growth in the future.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.