Executive Summary:
The Ministry of Mines addressed concerns regarding the centralized auction policy, launched in March 2025. As of July 23, 2025, 187 mineral blocks have been auctioned since January 1, 2024, including 34 critical and strategic mineral blocks. The government is actively working to expedite the operationalization of auctioned blocks and incentivize private exploration. Draft Mineral Auction Rules, 2025 include penalties for delays.
Key Points / Main Content:
Auctioned Mineral Blocks:
* 187 mineral blocks auctioned since January 1, 2024, including 34 critical and strategic mineral blocks (Lithium, REEs, Nickel, Cobalt, etc.).
* Central Government auctions critical and strategic minerals as per the MMDR Amendment Act, 2023.
Operationalization of Auctioned Blocks:
* 66 out of 526 major mineral blocks auctioned since 2015 are currently in production.
* Government measures to accelerate operationalization:
* Review meetings with State Governments to resolve issues.
* Dedicated Project Management Unit (PMU) to monitor progress.
* Mining dashboard to track the status of auctioned blocks.
* Coordination with MoEFCC to expedite approvals/clearances.
Draft Mineral Auction Rules, 2025:
* Include penalties for delayed exploration and environmental clearances.
* The draft is available on the Ministry of Mines website.
Incentivizing Private Exploration:
* Incentives for private exploration through Notified Private Exploration Agencies (NPEA) since 2022-23.
* 79 projects sanctioned to NPEAs by the National Mineral Exploration Trust (NMET) till July 17, 2025.
* 196 projects of critical and strategic minerals, including rare earth and Copper, sanctioned by NMET.
Impact Analysis:
State Governments:
* Impact: Required to collaborate in review meetings and address on-ground issues to facilitate operationalization of mineral blocks.
* Action Required: Participate in review meetings, resolve on-ground issues, and expedite necessary approvals.
Private Exploration Agencies (NPEA):
* Impact: Benefit from incentives for private exploration through sanctioned projects by NMET.
* Action Required: Participate in sanctioned projects.
Ministry of Environment, Forest and Climate Change (MoEFCC):
* Impact: Expected to streamline and expedite environmental and forest clearances for mining projects.
* Action Required: Coordinate with the Ministry of Mines to expedite clearances.
Mineral Block Auction Participants:
* Impact: Subject to penalties for delays in exploration and environmental clearances as per the draft Mineral Auction Rules, 2025.
* Action Required: Expedite exploration and environmental clearance processes to avoid penalties.
Key Entities Referenced
Lithium: A critical mineral mentioned in the context of mineral block auctions.
Rare Earth Elements REEs: Critical minerals mentioned in the context of mineral block auctions and government plans to attract investments.
Mines and Minerals Development and Regulation MMDR Act: The primary legislation governing the mining sector in India, which has been amended to facilitate auctions and regulate mineral development.
MMDR Amendment Act, 2023: Amendment to the Mines and Minerals Development and Regulation Act, related to auctioning of critical and strategic minerals.
Mineral Auction Rules, 2025: A set of rules being drafted to govern mineral auctions, including penalties for delays.
Notified Private Exploration Agency NPEA: Private agencies incentivized by the government to conduct mineral exploration.
National Mineral Exploration Trust NMET: An organization that sanctions projects to Notified Private Exploration Agencies NPEAs for mineral exploration.
Ministry of Environment Forest Climate Change MoEFCC: The government ministry responsible for environmental and forest clearances, which are crucial for operationalizing auctioned mineral blocks.
GOVERNMENT OF INDIA
MINISTRY OF MINES
LOK SABHA
UNSTARRED QUESTION No. 560
ANSWERED ON 23.07.2025
CENTRALIZED AUCTION POLICY
560. SHRI RAHUL KASWAN:
Will the Minister of MINES be pleased to state:
(a) whether it is a fact that over 335 mineral blocks, including 70 critical mineral blocks
like Lithium, Rare Earth Elements (REEs), etc, were auctioned since 2024 under the
centralized auction policy launched in March 2025;
(b) if so, the details thereof and if not, the reasons therefor;
(c) the manner in which the Government proposes to ensure rapid operationalisation,
given that only around 56 out of 440 auctioned blocks since 2015 are functional and
delays persist due to State-level approvals;
(d) whether the draft Mines and Minerals Development and Regulation (MMDR)
Amendment Rules, 2025 include penalties for delayed exploration and environmental
clearances and if so, the details of framework and timelines;
(e) whether the Government plans to incentivize private exploration through Notified
Private Exploration Agency (NPEA) and reforms to attract investments in critical
minerals like copper and rare earths; and
(f) if so, the details thereof and anticipated outcomes?
ANSWER
THE MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) & (b): Since 1st January, 2024, a total of 187 mineral blocks have been auctioned,
including 34 critical and strategic mineral blocks auctioned by the Central Government
including minerals such as Lithium, Rare Earth Elements (REEs), Nickel, and Cobalt
etc. The Auction of the critical and strategic minerals (as defined in Part D of Schedule-
I of the Mines and Minerals (Development and Regulation) (MMDR) Act) is being done
by the Central Government as per the MMDR Amendment Act, 2023.
(c): Since 2015, 526 major mineral blocks have been auctioned by various State
Governments, and Central Government, of which currently 66 blocks are in production.
Unlike other projects, mining projects have a longer gestation period, and
production from auctioned mines can commence only after obtaining necessaryapprovals/clearances such as approval of mining plan, environmental clearance,
forest clearances, land acquisition etc.
To accelerate the operationalization of auctioned mineral blocks, the Central
Government has implemented several key measures, including holding frequent
review meetings with State Governments to resolve on-ground issues, establishment
of a dedicated Project Management Unit (PMU) to monitor progress and address
bottlenecks, development of a mining dashboard to track status of auctioned blocks,
close coordination with Ministry of Environment Forest & Climate Change (MoEF&CC)
and other Ministries to streamline and expedite approvals/clearances.
(d): The draft amendment of Mineral (Auction) Rules, 2025 include penalties
including for delayed exploration and environmental clearances. The draft is available
on the Ministry of Mines website and can be accessed at
https://mines.gov.in/admin/download/681301956a2f61746076053.pdf
(e) & (f): The Government has taken steps to incentivize private exploration through
the Notified Private Exploration Agencies (NPEA) from the year 2022-23. Till
17.07.2025, a total of 79 projects have been sanctioned by National Mineral
Exploration Trust (NMET) to NPEAs. Further, a total of 196 projects of critical and
strategic minerals including rare earth and Copper have been sanctioned by NMET.
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