India Concludes Tranche V Auction of Critical and Strategic Minerals: 10 New Blocks Awarded Across Six States
In a significant step toward strengthening India’s resource security and promoting domestic self-reliance, the Ministry of Mines has successfully concluded the Tranche V auction of critical and strategic mineral blocks, launched on January 28, 2025. Out of the 15 mineral blocks put up for auction, 10 blocks were successfully awarded, marking a strategic boost to India’s critical mineral supply chain.
This tranche represents a continued effort by the Indian government to diversify mineral sourcing, reduce import dependence, and support the development of key sectors including electronics, renewable energy, agriculture, and defense.
Minerals in Focus: A Diverse and Strategic Portfolio
The 10 successfully auctioned blocks comprise a valuable mix of critical and strategic minerals:
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Graphite – Essential for electric vehicle (EV) batteries and lubricants
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Phosphorite & Phosphate – Vital for fertilizers and food security
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Rare Earth Elements (REEs) – Crucial for electronics, clean energy, and defense technology
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Vanadium – Used in high-strength steel and emerging energy storage technologies
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Potash (first-time auction) – A key component of potash-based fertilizers
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Halite (first-time auction) – Common salt with industrial applications in chemicals and water treatment
The addition of Potash and Halite blocks in this tranche marks a significant milestone, as it’s the first time these two minerals have been offered under India’s mineral auction regime.
Geographical Spread: Pan-India Resource Development
The 10 awarded blocks are spread across six mineral-rich states:
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Chhattisgarh
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Karnataka
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Madhya Pradesh
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Odisha
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Rajasthan
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Uttar Pradesh
This wide distribution highlights the pan-India potential for exploration and commercialization of strategic mineral reserves, contributing to balanced regional development and employment generation in resource-rich but economically underdeveloped districts.
Cumulative Impact: 34 Strategic Blocks Now Auctioned
With the successful conclusion of Tranche V, the total number of critical and strategic mineral blocks auctioned by the Central Government has now reached 34. This growing inventory of awarded blocks reflects the government’s commitment to transforming India’s mineral exploration and extraction landscape through:
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Transparent and competitive e-auction processes
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Faster clearances and simplified licensing
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Collaboration with PSUs and private sector players
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Targeted exploration through agencies like GSI and MECL
Significance for India’s Strategic Interests
Critical and strategic minerals are the building blocks of 21st-century technologies. From EVs and semiconductors to wind turbines and satellites, these resources are indispensable. However, India has historically depended on imports from geopolitically sensitive regions, especially for REEs, Potash, and Phosphates.
By systematically identifying and auctioning domestic reserves, India is:
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Enhancing resource security
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Supporting Make in India and Atmanirbhar Bharat
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Reducing supply chain vulnerabilities
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Encouraging foreign and domestic investments in exploration and processing
Way Forward
The successful Tranche V auction paves the way for faster commencement of mining operations, value addition within India, and the establishment of mineral processing hubs. The Ministry of Mines is expected to launch Tranche VI later this year, further expanding the scope of critical mineral auctions.
Additionally, policy reforms under the MMDR Act, increased funding for exploration, and strategic alliances with other mineral-rich countries will play a pivotal role in shaping India’s future as a global hub for clean and critical mineral supply chains.