Centre Unveils Second Tranche Of Critical Mineral Exploration Auctions

17 Feb 2026 CW Team

The auctions will offer eleven blocks of critical and deep-seated minerals across eight states, reflecting policy emphasis on materials required for clean energy technologies, electronics and advanced manufacturing. Officials said the programme seeks to reduce import dependence by mapping indigenous reserves and accelerating discovery timelines. Analysts expect a mix of domestic and foreign investors to bid, drawn by clearer rules and potential downstream opportunities in processing and value addition.

The auctions proceed under the Exploration Licence regime introduced by the Mines and Minerals (Development and Regulation) Amendment Act, 2023 and operationalised through the Mineral (Auction) Amendment Rules, 2023, providing a statutory basis for early-stage exploration. The framework permits private players to undertake initial prospecting and data generation through competitive bidding. Authorities emphasised that transparent tenure conditions and relinquishment clauses are intended to encourage risk capital while preserving state oversight and environmental safeguards standards.

Tranche-II comprises eleven blocks that the government described as hosting critical and deep-seated mineral deposits, with bidding open to qualified firms under published tender conditions. Officials said the timeline will include defined exploration periods, work programme commitments and periodic reporting of findings. The authorities anticipate that data from awarded licences will rapidly inform follow-up drilling, beneficiation studies and potential downstream investment, and support domestic supply chains and technology adoption plans sustainably.

The government launched the second tranche of auctions for Exploration Licence (EL) blocks on Wednesday in New Delhi, with the Union Minister for Coal and Mines G Kishan Reddy presiding over the event. The move signals a focused effort to expand the domestic mineral base and to catalyse investment in upstream activity. Officials presented the package as part of a broader drive to identify and unlock deep-seated resources that have remained underexplored. The initiative follows earlier measures to streamline regulatory approvals and promote private sector participation. The auctions will offer eleven blocks of critical and deep-seated minerals across eight states, reflecting policy emphasis on materials required for clean energy technologies, electronics and advanced manufacturing. Officials said the programme seeks to reduce import dependence by mapping indigenous reserves and accelerating discovery timelines. Analysts expect a mix of domestic and foreign investors to bid, drawn by clearer rules and potential downstream opportunities in processing and value addition. The auctions proceed under the Exploration Licence regime introduced by the Mines and Minerals (Development and Regulation) Amendment Act, 2023 and operationalised through the Mineral (Auction) Amendment Rules, 2023, providing a statutory basis for early-stage exploration. The framework permits private players to undertake initial prospecting and data generation through competitive bidding. Authorities emphasised that transparent tenure conditions and relinquishment clauses are intended to encourage risk capital while preserving state oversight and environmental safeguards standards. Tranche-II comprises eleven blocks that the government described as hosting critical and deep-seated mineral deposits, with bidding open to qualified firms under published tender conditions. Officials said the timeline will include defined exploration periods, work programme commitments and periodic reporting of findings. The authorities anticipate that data from awarded licences will rapidly inform follow-up drilling, beneficiation studies and potential downstream investment, and support domestic supply chains and technology adoption plans sustainably.

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