🗞️ Why in News Union Coal & Mines Minister G. Kishan Reddy announced on April 13, 2026 at a Hyderabad roadshow that India has now auctioned 46 critical mineral blocks across six rounds and is launching the 7th tranche with 19 additional blocks — including Telangana’s first vanadium and titanium blocks. Tender sale ends May 18, 2026; bids close May 25, 2026. The push is anchored to the Viksit Bharat 2047 vision of mineral self-reliance.
What Are Critical Minerals?
Critical minerals are raw materials essential for modern economic and strategic sectors whose supply is concentrated in a few countries and is therefore vulnerable to geopolitical disruption.
India’s List of 30 Critical Minerals (2023)
Released by the Ministry of Mines on July 28, 2023, following recommendations of an expert committee chaired by Dr Veena Kumari Dermal:
| Category | Examples |
|---|---|
| Energy transition | Lithium, Cobalt, Nickel, Graphite, Silicon (for batteries); Rare Earths (for wind turbines, EV motors) |
| Strategic / defence | Titanium, Tungsten, Vanadium, Beryllium, Tantalum, Zirconium |
| Electronics | Gallium, Germanium, Indium (semiconductors, displays) |
| High-tech manufacturing | Rare Earth Elements (REE — 17 in total), Platinum Group Metals |
The list broadly aligns with those identified by the USA (50 minerals), EU (34), Australia (30), and Japan (31), though specifics differ.
The 7th Tranche — Block Details
Blocks on Offer (2026 Round 7)
| Category | Blocks | Key Minerals |
|---|---|---|
| Strategic metals | 5 | Vanadium, Titanium (Telangana first-ever) |
| Battery minerals | 6 | Graphite, Lithium (J&K, Chhattisgarh) |
| Rare earths | 3 | REE blocks (Andhra Pradesh, Odisha) |
| Industrial metals | 5 | Tungsten, Molybdenum, Antimony |
| Total | 19 | — |
Cumulative Auction Track Record (Rounds 1-6, 2023-2025)
- Total blocks offered: ~70
- Successfully auctioned: 46 (~65% success rate)
- Key wins: Reasi (J&K) lithium block — Tier-2 rich (~5.9 million tonnes inferred resource); Salem (Tamil Nadu) tungsten block; Barmer (Rajasthan) REE reserves
- Failures: 24 blocks unsold — primarily because of inadequate geological data, remote access, or concerns over land acquisition
The Legal Framework — MMDR Amendment 2023
The Mines and Minerals (Development and Regulation) Amendment Act, 2023 (effective August 17, 2023) is the legal backbone of India’s critical minerals push.
Key Amendments
| Change | Pre-2023 | Post-2023 |
|---|---|---|
| Critical minerals auction authority | States (for all minerals) | Central Government for 24 critical/strategic minerals (new Schedule 2) |
| Exploration licences (EL) | Not available to private sector | New EL regime — private firms can explore and charge state governments a discovery fee |
| Atomic minerals | Reserved for central government only | 6 atomic minerals (lithium, beryllium, titanium, niobium, tantalum, zirconium) removed from atomic list — now open to private exploration |
Why Central Auction for Critical Minerals?
- Ensures uniform standards and timelines
- Coordinates strategic stockpiling — e.g., the KABIL (Khanij Bidesh India Limited) JV’s overseas acquisitions
- States retain royalty revenue (~30% of the auction premium goes to state governments)
Why Self-Reliance Matters — The Geopolitics
China’s Dominance
| Mineral | China’s share of global supply / processing |
|---|---|
| Rare Earths (mining) | ~60% |
| Rare Earths (processing) | ~85% |
| Lithium processing | ~60% |
| Graphite processing | ~70% |
| Cobalt refining | ~65% |
| Neodymium magnets | ~85% |
Recent Geopolitical Shocks
- July 2023: China imposed export controls on Gallium and Germanium
- December 2023: China restricted exports of Graphite
- 2024: China required export licences for Tungsten and Molybdenum
- October 2024: China added Antimony to export-control list
Every one of these minerals is essential to EV batteries, solar panels, semiconductors, or defence systems. For India — which imports ~100% of many of these minerals — the risk of supply interruption is acute.
India’s Resource Position — What’s Actually Here
Reasi Lithium Find (2023)
The Geological Survey of India (GSI) announced in February 2023 that it had identified 5.9 million tonnes of inferred lithium resources in the Salal-Haimana area of Reasi district, Jammu & Kashmir — the first significant lithium discovery in India.
Context: Even 5.9 million tonnes would be globally significant — it would put India in the top-5 lithium resource holders (after Chile, Australia, Argentina, China). However, “inferred resources” is the lowest geological confidence tier — actual extractable reserves will be 20-50% of the inferred figure.
Other Significant Reserves
| Mineral | Key Indian Reserves |
|---|---|
| Graphite | Andhra Pradesh, Jharkhand, Tamil Nadu, Odisha |
| Titanium | Kerala (Chavara, Manavalakurichi), Odisha, Andhra Pradesh |
| Vanadium | Odisha (Singhbhum), Telangana (Mahabubnagar) |
| Tungsten | Rajasthan (Degana), Karnataka (Kolar) |
| Rare Earths (monazite) | Kerala coastal beach sands; Tamil Nadu, Odisha, Andhra Pradesh |
| Cobalt | Odisha (Sukinda valley) — by-product of chromite mining |
Problem: Many of these reserves are known but under-explored — i.e., geological surveys are outdated (some from the 1970s). The 2023 EL regime is designed precisely to attract private exploration to modernise this data.
KABIL — India’s Resource Diplomacy Arm
Khanij Bidesh India Limited (KABIL) is a joint venture set up on August 1, 2019 to acquire strategic mineral assets abroad.
KABIL’s Composition
- National Aluminium Company (NALCO): 40%
- Mineral Exploration Corporation Limited (MECL): 30%
- Hindustan Copper Limited (HCL): 30%
(Note: HCL here is Hindustan Copper — not Hindustan Computers Limited, the IT company)
KABIL’s Key Deals
| Country | Mineral | Status (2026) |
|---|---|---|
| Argentina | Lithium (5 blocks in Catamarca, covering ~15,700 hectares) | Agreement signed Jan 2024; exploration underway |
| Australia | Lithium, Cobalt | Preliminary MoU (2022); pending acquisition |
| Africa (various) | Various | Exploratory discussions |
Import Duty Reforms — The 2025 Budget
The Union Budget 2025-26 announced complete removal of import duties on 24 critical minerals (previously ranged from 2.5% to 10%). Rationale:
- Downstream manufacturing boost — EV makers, solar cell makers, battery manufacturers need cheap input materials
- Reduce hoarding — with duties gone, stockpilers have less reason to hold strategic reserves speculatively
- Investment signal — tells both domestic and foreign investors that India is serious about downstream value addition
Trade-off: Zero duties eliminate the domestic price cushion that incentivises local mining. Policy must walk a tightrope between encouraging domestic production (via PLI for battery cells, e-vehicles) and keeping input costs low (via zero import duty).
The Full Value Chain — Where India Is Still Missing
Critical minerals alone don’t deliver strategic autonomy — processing, manufacturing, and recycling matter equally.
Mining → Concentration → Refining/Processing → Cell/Component Manufacturing → Final Product → Recycling
✅ ✅ (partial) ❌ (major gap) ❌ (starting) ❌ ❌ (nascent)
India’s Gap
| Stage | Status |
|---|---|
| Mining | Auction regime active; 46 blocks sold |
| Concentration | Domestic capacity growing |
| Refining | ~2-3% of global capacity for lithium refining — major bottleneck |
| Battery cell manufacturing | PLI for ACC (Advanced Chemistry Cell) — ₹18,100 crore (2021); target 50 GWh by 2028; current operational capacity ~5-10 GWh |
| EV/Solar assembly | Significant growth under PLI (Auto, Solar PV) |
| Recycling | <10% lithium recovery rate; China achieves ~95%. Draft Battery Waste Management Rules 2022 require EPR |
The critical minerals auction addresses only the first stage. Without parallel investment in refining and recycling, India could end up exporting concentrates to China (for processing) and reimporting finished cells — defeating the self-reliance purpose.
Strategic Stockpiling
Several countries maintain strategic mineral reserves analogous to petroleum reserves:
| Country | Mineral Stockpiling |
|---|---|
| USA | Defense Stockpile (established 1939) — covers ~$1 billion worth of strategic materials |
| Japan | JOGMEC maintains 60-day supply reserves of rare earths + base metals |
| South Korea | KORES stockpiles 7 rare metals |
| China | State Reserve Bureau — massive, opaque; reportedly multi-year supply buffers |
| EU | Critical Raw Materials Act (2024) mandates 10% of annual consumption to be domestic-stockpiled |
| India | No organised stockpile — MMDR 2023 authorises one but implementation is nascent |
India’s absence of a formal stockpile is a critical gap — especially given China’s supply concentration and recent export restrictions.
UPSC Relevance
| Paper | Angle |
|---|---|
| GS2 — IR | India-China mineral geopolitics; KABIL in Argentina/Australia; resource diplomacy; EU CRMA 2024 |
| GS3 — Economy | MMDR Amendment 2023; auction design; royalty structure; import duty reforms; PLI for ACC batteries |
| GS3 — Environment | Mining vs forest rights; Schedule V areas; MMDR 2023 vs FRA 2006 tensions |
| GS3 — Security | Strategic minerals; stockpiling gap; defence supply chain autonomy |
| Prelims | List: 30 critical minerals (2023) · MMDR Amendment: 2023 · KABIL: NALCO (40) + MECL (30) + HCL (30) · Reasi lithium find: 5.9 MT inferred (2023, J&K) · Import duty on 24 critical minerals: removed in Budget 2025-26 |
| Interview | “Has India’s critical minerals strategy correctly prioritised mining over refining, or should the policy sequence be reversed?” |
📌 Facts Corner
Critical Minerals Auctions (as of April 2026): Total blocks auctioned: 46 (Rounds 1-6) · Round 7 launching 19 blocks · Telangana: first vanadium + titanium blocks · Tender sale close: May 18, 2026 · Bid deadline: May 25, 2026 · Minister: G. Kishan Reddy (Coal & Mines).
India’s 30 Critical Minerals (2023): Released by Ministry of Mines July 28, 2023 · Includes Lithium, Cobalt, Nickel, Graphite, REE, Titanium, Vanadium, Tungsten, Gallium, Germanium, Indium.
MMDR Amendment Act 2023: Effective Aug 17, 2023 · Centre auctions 24 critical/strategic minerals (Schedule 2) · New Exploration Licence (EL) regime · 6 atomic minerals opened to private sector.
KABIL: Established Aug 1, 2019 · JV of NALCO (40%) + MECL (30%) + Hindustan Copper (30%) · Argentina lithium deal: 5 blocks, Catamarca, Jan 2024.
Reasi Lithium Find: Announced Feb 2023 by GSI · Location: Salal-Haimana, Reasi district, J&K · 5.9 MT inferred resource.
Import Duty: Removed on 24 critical minerals in Budget 2025-26 · GS3: Economy; GS2: IR.
