India Set to Auction Maximum Critical Mineral Blocks by 2031: Minister Satish Chandra Dubey

India is set to ramp up the auction of critical mineral blocks over the next six years as part of its broader strategy to secure domestic supply chains essential for green energy and advanced technology sectors.

Speaking at the FICCI Critical Minerals Matrix conference, Union Minister of State for Mines and Coal Satish Chandra Dubey reaffirmed the government’s commitment to reducing import dependence through aggressive mineral auctions and strategic policy interventions. The initiative aligns with the recently launched National Critical Minerals Mission, which has allocated INR 34,300 crore over seven years to strengthen the sector. “The government has already auctioned 24 critical mineral blocks domestically, and we aim to auction as many critical mineral blocks as possible by 2031,” Dubey announced.

He stressed the importance of public-private partnerships, stating, “We must work as complementary partners and as a team to build a self-reliant India,” urging greater private sector involvement in mineral exploration and extraction. With electric vehicles, electronics manufacturing, and renewable energy systems driving a surge in demand for critical minerals, securing stable supply chains has become a top priority.

Jyoti Vij, Director General of FICCI, emphasised the economic significance of critical minerals and how the National Critical Minerals Mission would support production, recycling, and global acquisitions to reduce import reliance. She announced the launch of the FICCI Committee on Critical Minerals, which will collaborate with the government and industry stakeholders to address challenges and leverage opportunities in the sector. Industry leaders echoed the urgency of boosting domestic mineral production.

Dhiraj Nayyar, Group Chief Economist at Vedanta, highlighted the growing resource needs, noting, “We don’t want to move from import dependence on oil to import dependence on critical minerals. The key is exploration.” He called for streamlined approval processes and flexible land allocation policies to accelerate exploration.

Pratyush Sinha, Vice President of LOHUM, pointed to the government’s INR 34,000 crore scheme as a structured response to industry demands, developed after extensive consultation.

He cited lithium as a key opportunity, stating that global production is expected to increase tenfold in the next decade from the current 130,000 tonnes, creating major market openings for new players.

Rajib Maitra, partner at Deloitte, noted, “Lithium demand alone is expected to increase nine to tenfold over the next decade.”

At the event, the minister launched a FICCI-Deloitte report, titled 'Recovery of Critical Minerals from Mine Tailings and Overburden,' which highlights India's soaring demand for critical minerals.

The report identifies four key strategic areas for India's critical mineral sector: policies and incentives, extraction and processing technologies, supply chain integration, and capacity building. It further emphasises the need for Critical Mineral Recovery Zones, a nationwide assessment database for mine tailings, and dedicated regulatory frameworks to ensure efficient and sustainable mineral recovery.

It also highlights international best practices, citing Australia, the United States, Japan, and Canada as models where government-backed funds and collaborative programs have successfully enhanced critical mineral recovery from mine waste.

Dwelling on India’s mining sector, it said that the sector contributes 2.1-2.5 percent of GDP, playing a crucial role in power, steel, aluminium, and infrastructure growth, and is central to achieving the Viksit Bharat vision of a USD 30 trillion economy by 2047. The energy transition, EV adoption, and infrastructure expansion are driving unprecedented demand for critical minerals, but India remains heavily import-dependent, necessitating a strong domestic production and recovery strategy.

To address this, the INR 34,300 crore National Critical Minerals Mission focuses on boosting domestic mineral production, enhancing recycling and recovery mechanisms, and strengthening supply chain resilience. Policy reforms, royalty rationalisation, and large-scale auctions of onshore and offshore mineral blocks are being implemented to attract private sector investments, while the 2025 Union Budget’s customs duty exemptions further support industry growth.

Recognising the potential of mine waste as a resource, India is also prioritising the recovery of critical minerals from fly ash, tailings, and red mud to promote sustainability and resource efficiency. A proposed policy framework will support recovery initiatives through grants, subsidies, and tax incentives, fostering greater industry participation. Additionally, India and the United States are collaborating on critical mineral processing and recovery initiatives, ensuring access to advanced technologies and best practices.

Despite the promising outlook, challenges such as technical feasibility constraints, environmental concerns, and skill shortages persist. Overcoming these issues will require technological advancements, regulatory support, and industry collaboration.

However, the report further points out that by leveraging global expertise and fostering innovation, India can position itself as a global leader in critical minerals, ensuring long-term economic sustainability and strategic autonomy in key industries like renewable energy, electric mobility, and advanced manufacturing. This comprehensive approach will not only strengthen domestic supply chains but also align with India’s broader economic and environmental objectives, driving sustainable growth in the sector.