New Delhi, March 22: The Union Minister of Coal and Mines, G. Kishan Reddy, along with Minister of State for Coal and Mines, Satish Chandra Dubey, will inaugurate the significant and strategic seventh phase of mineral block auctions on Monday. This announcement was made by the Ministry of Mines on Sunday.
The Ministry emphasized that essential minerals are crucial for the country’s economic development and mineral security. The global shift towards clean energy and advanced technologies has led to a strong increase in demand for minerals such as lithium, graphite, rare earth elements (REE), tungsten, vanadium, titanium, and other rare metals. However, their limited availability and geographical concentration pose challenges for robust global supply chains.
In light of the strategic importance of these minerals, the Indian government amended the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) on August 17, 2023, designating 24 minerals as critical and strategic. This amendment grants the central government the authority to auction mining leases and joint licenses for these minerals. The revenue generated from these auctions is allocated to the respective state governments.
So far, the Ministry has successfully initiated six phases of auctions, resulting in the auction of 46 critical and strategic mineral blocks, reflecting strong industry participation and growing confidence in India’s mineral sector.
To maintain this momentum, the seventh phase will offer 19 blocks under mining leases and mixed licenses across several states. These blocks will include a diverse range of minerals essential for clean energy, advanced technology, fertilizers, and strategic industries.
To ensure transparency, efficiency, and speed in the operation of mineral blocks, the auction framework has been continuously strengthened. Recent reforms, including the Mineral (Auction) Second Amendment Rules, 2025, have streamlined post-auction timelines for performance security deposits, advance payments, and issuance of letters of intent. Additionally, the Mineral (Auction) Amendment Rules, 2026, introduced the option of insurance guarantee bonds as an alternative to bank guarantees, simplifying the process for bidders.
According to the Ministry, this auction will be conducted online through a transparent two-stage ascending auction process, where the successful bidder will be selected based on the highest percentage of the submitted mineral value.
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