India to launch first-ever auction of 20 blocks of ’critical and strategic minerals’ on 29 Nov
- India's Ministry of Mines will auction 20 blocks of critical and strategic minerals on 29 November. The revenue generated will go to state governments, boosting the economy and national security.
India will be launching the first tranche auction of critical and strategic minerals on 29 November, Wednesday. According to the Ministry of Mines, twenty blocks of critical and strategic minerals that are spread across the country will be auctioned.
"This is a landmark initiative that will boost our economy, enhance national security, and support our transition to a clean energy future," the mines ministry said in a statement on Tuesday.
The Ministry of Mines said that the revenue generated from the auctions will be accrued to state governments. This initiative is poised to play a pivotal role in supporting India's economy, fortifying national security, and bolstering efforts towards a sustainable and clean energy trajectory.
Critical and Strategic Minerals are in high demand as they cater to the needs of sectors like renewable energy, defence, agriculture, pharmaceutical, high-tech electronics, telecommunications, transport, creation of gigafactories, etc, the Ministry of Mines added.
The Centre has rationalised royalty rates of critical minerals to encourage more participation in auctions. “The Government had specified royalty rates for Platinum Group of Metals (PGM) at 4%, Molybdenum at 7.5%, Glauconite and Potash at 2.5% in March 2022,” the ministry informed.
Last month, the Centre specified royalty rates for Lithium at 3%, Niobium at 3%, and Rare Earth Elements at 1%. Critical minerals, including lithium, graphite, cobalt, titanium, and rare earth elements (REE), are essential for economic development and national security
Recently, through an amendment in the MMDR Act in August this year, 24 minerals were notified as Critical and Strategic minerals.
The auction will be conducted online in two stages. The eligible bidder will be selected based on the highest percentage of the value of mineral despatched quoted by them, the ministry added.
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Business NewsIndustryIndia to launch first-ever auction of 20 blocks of ’critical and strategic minerals’ on 29 Nov
First Published:28 Nov 2023, 02:29 PM IST
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