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8th Tranche Auction of Critical and Strategic Mineral Blocks Launched

UPSC / SSC current affairs note · IR

EconomyIRGovernment Policies

Why in news

The Ministry of Mines is launching the 8th tranche auction of critical and strategic mineral blocks on 15 July 2026. This is part of India's ongoing efforts to secure essential minerals for clean energy, advanced manufacturing, and strategic sectors.

Background

India has been auctioning critical and strategic mineral blocks in tranches to boost domestic production and reduce import dependence. The first seven tranches achieved over 63% success rate, with 56 out of 88 blocks successfully auctioned.

Key facts

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  1. The 8th tranche includes 20 critical and strategic mineral blocks spread across 9 states.

  2. Of these, 13 are newly identified blocks and 7 are re-offered from previous attempts.

  3. Minerals covered include molybdenum, graphite, glauconite, rare earth elements (REE), vanadium, gallium, titanium, tungsten, phosphorite, potash, lithium, caesium, and rubidium.

  4. These minerals are vital for clean energy, advanced manufacturing, fertilizers, defence, and other strategic sectors.

  5. With seven tranches completed, 56 out of 88 blocks have been successfully auctioned (over 63% success rate).

  6. In FY2025-26, a record 212 mineral blocks were auctioned, including 22 critical and strategic mineral blocks.

  7. The government has amended the Mineral (Auction) Rules, 2026 to simplify the auction process.

  8. Amendments rationalize upfront payment timelines, provide flexibility in executing mining leases and prospecting licences, and facilitate timely refund of bid security and performance security in case of auction cancellation not attributable to the bidder.

  9. These measures aim to improve ease of doing business, boost investor confidence, and accelerate operationalization of auctioned blocks.

Prelims pointers

  • Ministry of Mines
  • Mineral (Auction) Rules, 2026
  • Critical and Strategic Minerals
  • Rare Earth Elements (REE)
  • Mining Lease
  • Prospecting Licence
  • Ease of Doing Business
  • Clean Energy Transition

Mains angles

  • Discuss the significance of critical minerals for India's economic growth and national security.
  • Evaluate the government's auction framework for mineral blocks and its impact on the mining sector.
  • Analyze the role of policy reforms in enhancing ease of doing business in the mining sector.