**Summary:**
In response to Lok Sabha Unstarred Question No. 2909 on August 6, 2025, the Ministry of Mines addressed the exploration and auction of critical and strategic minerals. The amendment to the Mines and Minerals Development and Regulation (MMDR) Act, 1957, effective August 17, 2023, empowers the Central Government to exclusively auction critical and strategic minerals, including lithium, cobalt, and rare earth elements.
During the fiscal year 2024-25, the Central Government successfully auctioned 24 critical and strategic mineral blocks. To further enhance exploration, the National Mineral Exploration Trust (NMET) provides exploration incentives and partial reimbursement of exploration expenses to holders of Exploration and Composite Licenses for critical and deep-seated minerals. NMET sanctioned 72 projects related to critical and strategic minerals in 2024-25. Additionally, the Geological Survey of India (GSI) conducted 195 exploration projects for these minerals across various regions of the country during the same period.
The Notice Inviting Tenders (NITs) for the initial tranche of auctioning 13 mineral blocks for granting Exploration Licenses was issued on March 13, 2025.
Key Entities Referenced
Ministry of Mines: A ministry of the Government of India responsible for the administration of mines and minerals.
Lok Sabha: The lower house of the Parliament of India.
SHRI YADUVEER WADIYAR: A member of the Lok Sabha who raised a question regarding exploration and auction of critical and strategic minerals.
SHRI KARAN BHUSHAN SINGH: A member of the Lok Sabha who raised a question regarding exploration and auction of critical and strategic minerals.
Mines and Minerals Development and Regulation Act, 1957: An act of the Parliament of India that regulates the mining sector.
SHRI G. KISHAN REDDY: The Minister of Coal and Mines who answered the question in the Lok Sabha.
National Mineral Exploration Trust: An organization that provides exploration incentives and partial reimbursement of exploration expenses for critical and deep-seated minerals.
Geological Survey of India: An organization that carries out exploration projects for critical and strategic minerals.
GOVERNMENT OF INDIA
MINISTRY OF MINES
LOK SABHA
UNSTARRED QUESTION NO.2909
ANSWERED ON 06.08.2025
EXPLORATION AND AUCTION OF CRITICAL AND STRATEGIC MINERALS
2909. SHRI YADUVEER WADIYAR:
SHRI KARAN BHUSHAN SINGH:
Will the Minister of MINES be pleased to state:
(a) the manner in which the Government has enhanced the exploration and auction of
critical and strategic minerals such as lithium, cobalt and rare earth elements during
the last year;
(b) whether the Government has successfully auctioned any blocks under the new
exploration licence regime; and
(c) if so, the details thereof?
ANSWER
THE MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a): The Mines and Minerals (Development and Regulation) (MMDR) Act, 1957
amended with effect from 17.08.2023 has empowered the Central Government to
exclusively auction critical and strategic minerals like lithium, cobalt, and rare earth
elements etc. During the last year (2024-25), 24 critical and strategic mineral blocks
have been successfully auctioned by the Central Government.
To enhance exploration of critical and strategic minerals, National Mineral Exploration
Trust (NMET) provides exploration incentives and also offers partial reimbursement of
exploration expenses to holders of Exploration and Composite Licenses for critical and
deep-seated minerals. During last year (2024-25), NMET has sanctioned 72 projects
of critical and strategic minerals. Further, Geological Survey of India (GSI) has carried
out 195 exploration projects for critical and strategic minerals during last year (2024–
25) in different parts of the country.
(b) & (c): The Notice Inviting Tenders (NITs) for the 1st tranche of auction of 13 mineral
blocks for grant of Exploration Licence has been issued on 13th March, 2025.
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