India's push for critical minerals, auction tranche 2 tomorrow by Coal Min Prahlad Joshi

Hyderabad: Union Minister of Coal, Mines & Parliamentary Affairs, Pralhad Joshi, is set to launch the Second Tranche of Auction for Critical and Strategic Mineral Blocks on February 29th, 2024. This event, scheduled to take place tomorrow, will mark an important step in the country's pursuit of economic development and national security.

The auction is crucial for ensuring the availability of minerals essential for various sectors such as renewable energy, defence, pharmaceuticals, high-tech electronics, and more. With the global economy increasingly relying on minerals like lithium, graphite, cobalt, titanium, and rare earth elements, India's commitment to achieving 50% of its cumulative electric power from non-fossil sources by 2030 is driving the demand for these critical minerals.

An amendment to the MMDR Act in August 2023 identified 24 minerals as Critical and Strategic, giving the Central Government the authority to grant mineral concessions for these minerals. This move aims to prioritize the auction of these minerals to meet the country's requirements. Following this, royalty rates for critical minerals were rationalized to encourage more participation in auctions.

In the First Tranche of the Auction held on November 29th, 2023, Minister Pralhad Joshi launched 20 critical mineral blocks. Tomorrow's launch of the Second Tranche continues the government's efforts to expedite mineral exploration and development in critical areas.

Starting from February 29th, 2024, the sale of tender documents will commence. The auction will be conducted online through a transparent two-stage ascending forward auction process, with the eligible bidder selected based on the highest percentage of the value of mineral despatched quoted by them.

The Ministry of Mines has a history of funding research and development projects in the mining and metallurgy sector. Recently, the scope of the Science and Technology Programme (S&T program) has been expanded to include funding for research and innovation in start-ups and MSMEs working in the mining and mineral sector. The S&T-PRISM initiative aims to bridge the gap between R&D and commercialization in this sector.

Jawaharlal Nehru Aluminium Research Development and Design Center, Nagpur, has been designated as the Implementing Agency for S&T – PRISM. Pralhad Joshi will hand over letters of financial grants to selected start-ups during the program on February 29th, 2024.

The Geological Survey of India (GSI), with over 6000 employees, plays a pivotal role in India's mineral exploration journey. Under the Mission Karmayogi Bharat, the Capacity Building Commission has devised an Annual Capacity Building Plan (ACBP) for GSI to enhance competencies. This plan will also be released during tomorrow's event.

The launch of the Second Tranche of the Auction for Critical and Strategic Mineral Blocks, along with the distribution of financial grants to start-ups and the unveiling of the ACBP for GSI, underscores the government's commitment to bolstering the mineral sector and promoting innovation in this vital industry.