In a significant move towards securing its supply chain and fostering self-reliance, the Ministry of Mines launched the third round of online auctions for critical and strategic mineral blocks. This initiative aligns with Prime Minister Narendra Modi’s vision of “Aatmanirbhar Bharat” (Self-reliant India) and aims to ensure a steady domestic supply of essential minerals for sustainable development in the coming decades.
This auction round brings the total number of blocks offered to 38, following successful first and second tranches launched in November 2023 and February 2024, respectively. The latest offering encompasses seven new mineral blocks rich in Glauconite, Graphite, Nickel, Platinum Group Elements (PGE), Potash, Lithium, and Titanium. These resources are geographically dispersed across Bihar, Jharkhand, Tamil Nadu, Uttar Pradesh, and Jammu and Kashmir, indicating a strategic effort to tap into a diverse range of critical minerals across the nation.
It’s worth noting that the seven blocks presented in this tranche are being re-auctioned after receiving less than three bids in the first round. This second attempt demonstrates the government’s resolve to secure these valuable resources and potentially attract a wider pool of bidders. To ensure transparency and a level playing field, the auction will be conducted electronically through a two-stage ascending process. Bids will be evaluated based on the highest percentage of the value of extracted minerals offered by the bidder.
Prospective bidders can access comprehensive details about the mines, including geological reports, reserve estimates, and auction terms, on the MSTC e-auction platform the sale of tender documents commences on March 20, 2024, and interested parties have until May 9, 2024 (5:00 PM IST) to purchase them. The deadline for submitting bids is May 14, 2024 (5:00 PM IST).
This latest auction round signifies a crucial step towards India’s long-term goal of building a robust domestic supply chain for critical minerals. These resources are essential for various industries, including electronics, renewable energy, and aerospace. By securing access to them, India can not only reduce its dependence on imports but also empower domestic manufacturing and innovation. Additionally, responsible and sustainable mining practices will be crucial throughout the exploration and extraction processes to ensure minimal environmental impact.
