New Delhi [India], November 28 : The Ministry of Mines is set to launch the first-ever tranche auction of critical and strategic minerals on November 29.
According to a press release by the Ministry of Mines, Union Minister of Coal, Mines, and Parliamentary Affairs, Pralhad Joshi, will inaugurate this historic initiative, marking a significant step towards enhancing India's economic strength, national security, and facilitating the nation's transition to a clean energy future.
The auction encompasses twenty blocks of critical and strategic minerals strategically distributed across the country. This initiative is poised to play a pivotal role in supporting India's economy, fortifying national security, and bolstering efforts towards a sustainable and clean energy trajectory.
Critical minerals, including lithium, graphite, cobalt, titanium, and rare earth elements (REE), are essential for economic development and national security, read the press release.
The global economy's future, underpinned by technologies dependent on these minerals, necessitates India's proactive approach to secure a reliable supply.
India has committed to achieving 50 per cent of its cumulative electric power installed capacity from non-fossil sources by 2030, driving the demand for electric cars, renewable energy projects, and battery storage systems, read the press release.
Critical and Strategic Minerals are typically high in demand and are often met through imports.
These minerals play a crucial role in sectors such as renewable energy, defence, agriculture, pharmaceuticals, high-tech electronics, telecommunications, transport, and the establishment of gig factories.
An amendment in the Mines and Minerals (Development and Regulation) Act on August 17 this year, identified 24 minerals as Critical and Strategic, conferring the power to grant mineral concessions to the Central Government, read the press release.
The move allows the government to prioritize auctions based on the country's requirements. Royalty rates for critical minerals, including Platinum Group of Metals (PGM), Molybdenum, Glauconite, Potash, Lithium, Niobium, and Rare Earth Elements, have been rationalized to encourage broader participation in auctions.
The sale of tender documents will commence on November 29. Detailed information about the mineral blocks, auction terms, and timelines will be available on the MSTC auction platform (www.mstcecommerce.com/auctionhome/mlcl/index.jsp) from 6 pm on the same day, read the press release.
The auction process will be conducted online through a transparent two-stage ascending forward auction process, with eligible bidders selected based on the highest percentage of the value of mineral dispatch quoted by them.
This marks a significant stride in promoting transparency and efficiency in the allocation of critical and strategic minerals, contributing to the nation's overall growth and resilience.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor