Why in News?
India’s “mineral blocks” are in the news because the government has recently recorded a record pace of auctions and operationalisation of mineral blocks—especially critical and strategic minerals—as part of its push for resource security, industrial growth, and Aatmanirbhar Bharat.
Types of Blocks & Auctions
- Critical & Strategic Minerals: A dedicated category of 24 minerals (e.g., Lithium, Cobalt, Titanium) crucial for high-tech industries and national security, auctioned directly by the Central Government since 2023.
- Major Minerals: Includes Iron Ore, Limestone, and Bauxite; revenues from these auctions accrue to the respective State Governments.
- Offshore Blocks: Exploration reports for 10 offshore blocks (polymetallic nodules in the Andaman Sea and lime-mud off Gujarat) have been identified for upcoming auctions.
Leading States in FY 2025-26
- Gujarat: Led the nation with 32 blocks auctioned.
- Rajasthan: Followed closely with 30 blocks.
- New Entrants: Tamil Nadu successfully conducted its first-ever mineral block auctions, and Uttarakhand auctioned its first magnesite block.
Strategic Importance
- Energy Transition: Critical minerals are the backbone of solar panels, wind turbines, and Electric Vehicle (EV) batteries.
- Reducing Import Dependence: India aims to secure domestic supplies to avoid over-reliance on countries like China, which dominates the global processing and refining of these minerals.
- Revenue Generation: Record auctions are significantly strengthening the fiscal position of mineral-bearing states through increased royalties and contributions to District Mineral Foundations (DMF).
Recent Legislative Framework
- MMDR Act Amendments: Recent changes empower the Centre to auction critical minerals directly and have introduced Mineral Exchanges—electronic platforms for transparent trading of minerals and metals.
- National Critical Minerals Mission (NCMM): A strategic framework launched to oversee production, recycling from e-waste, and global acquisition of mineral assets.
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