On December 17, 2025, the Minister of Coal and Mines (Shri G. Kishan Reddy) answered Unstarred Question No. †2910 in Lok Sabha regarding the objective behind rationalisation of royalty rates, as asked by Shri Chandan Chauhan and Shri Haribhai Patel.
The Central Government has rationalized the rates of royalty for Graphite, Caesium, Rubidium and Zirconium, effective from November 20, 2025, to promote the auction of mineral blocks containing these minerals. The objective is to increase indigenous production, reduce imports and supply chain vulnerabilities, and generate employment opportunities. Graphite and Zirconium are also among the 24 critical and strategic minerals listed in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). The revised royalty rates are applicable to all blocks of these minerals put on auction.
Key Entities Referenced
Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act): Act referenced as containing the list of critical and strategic minerals, including Graphite and Zirconium.
Ministry of Mines: The ministry responsible for rationalizing royalty rates for minerals.
Graphite, Caesium, Rubidium and Zirconium: Minerals for which royalty rates are being rationalized.
GOVERNMENT OF INDIA
MINISTRY OF MINES
LOK SABHA
UNSTARRED QUESTION No. †2910
ANSWERED ON 17.12.2025
OBJECTIVE BEHIND RATIONALISATION OF ROYALTY RATES
†2910. SHRI CHANDAN CHAUHAN:
SHRI HARIBHAI PATEL:
Will the Minister of MINES be pleased to state:
(a) the objectives behind rationalised royalty rates for minerals such as Graphite,
Caesium, Rubidium and Zirconium;
(b) the manner in which the revised royalty rates are likely to impact the domestic
production, imports and overall supply chain security; and
(c) the details of mechanisms adopted by the Government to ensure the reflection of
the revised royalty structure in the auction of critical and auxiliary mineral blocks?
ANSWER
THE MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) to (c): The Central Government has rationalized rates of royalty of Graphite,
Caesium, Rubidium and Zirconium with effect from 20.11.2025 to promote auction of
mineral blocks containing these minerals. Graphite, Caesium, Rubidium and
Zirconium are important minerals for high-tech applications and energy transition.
Graphite and Zirconium are also among the 24 critical and strategic minerals listed in
the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
Increase in indigenous production of these minerals envisages to reduce imports and
supply chain vulnerabilities and also generate employment opportunities in the
country. The revised royalty rates are applicable to all blocks of these minerals put on
auction.
*****