India launches first tranche of exploration licence auctions for critical minerals across 10 states

This tranche features 13 blocks spread across 10 states, covering deposits of critical and deep-seated minerals such as gold, copper, diamonds, zinc, rare earth elements (REE), vanadium, and zirconium, according to an Indian Express report.

These minerals are vital for industries including electronics, renewable energy, defence, and aerospace.

To mitigate risks for private explorers, the National Mineral Exploration Trust (NMET) introduced a reimbursement scheme in June 2024, covering up to 50% of eligible expenses—capped at ₹20 crore—for activities like geophysical surveys, exploratory drilling, and chemical and petrological analysis, according to the report.

The mines ministry assumed responsibility for EL auctions in October 2023 after only six out of 14 state governments, which were allocated blocks for EL, initiated the auction process.

“Any delay in auction of exploration licence blocks containing such critical and strategic minerals have impact on the starting exploration and production of these minerals and resultant availability of these minerals in the country. Timely action is required to support the country's goal of achieving Atmanirbharta in critical and strategic minerals,” the ministry stated in an order, the report added.

It further noted that "fragmented and uncoordinated auction of exploration licence blocks by different State Governments may have resulted in lack of response in the auction of exploration licence blocks by the State Governments… a centralised auction may address the issues regarding lack of response in the auction of exploration licence blocks.”

The ministry is also strengthening exploration efforts through government agencies.

With ₹3,000 crore allocated to NMET and ₹4,000 crore to the Geological Survey of India (GSI), the National Critical Minerals Mission aims to conduct 1,200 domestic critical mineral exploration projects by 2030-31.