Seventh tranche of auctions for critical minerals launched

Metro India News | Hyderabad

The government of India has launched the seventh tranche of auctions for critical and strategic mineral blocks, offering 19 blocks across multiple states under mining lease and composite license frameworks. Union Minister of Coal and Mines G. Kishan Reddy, along with Minister of State Satish Chandra Dubey, formally inaugurated the auction process. The Ministry of Mines highlighted that the previous six tranches have auctioned 46 critical mineral blocks, demonstrating strong participation from the industry and growing confidence in India's mining sector reforms.

Speaking on the occasion, Mining Minister Kishan Reddy emphasized the transformative role of Prime Minister Narendra Modi's leadership in modernizing the mining sector through advanced technology, transparency, and efficiency. He mentioned that critical minerals play a pivotal role in global technology advancements, the energy transition, electric vehicles, renewable energy production and defense applications.

The minister stressed the need for balanced development that avoids environmental harm while ensuring benefits reach local communities affected by mining activities. To this end, District Mineral Foundations (DMFs) have been established to channel revenues toward development in mining-impacted areas, prioritizing education, healthcare, and other essential facilities. The government launched the Aspirational DMF Program last year to integrate DMFs with the Aspirational Districts Program (ADP) and Aspirational Blocks Program (ABP).

Currently, DMFs operate in 656 districts across 23 states, with cumulative funds amounting to Rs 1.24 lakh crore. Of this, approximately Rs 93,500 crore originates from aspirational districts, where around 70% of development works are concentrated. Additionally, the minister highlighted the importance of scientific mine closure, with a target to close 147 mines by 2025 in a planned and sustainable manner, followed by post-closure development in those areas.