As part of fast-tracking critical mineral auctions, government sources told CNBC-TV18 that an “on-tap” allotment of critical mineral blocks may be undertaken for swifter auction and allocation to enhance the probability of successful bidding.
An “on-tap” policy would mean that any company eligible to participate in the auction could apply for a license or permission throughout the year instead of within specific application windows.
The policy would potentially allow the government to fast-track the process of putting a critical mineral block up for auction in case of multiple requests from interested bidders, effectively placing such blocks in the next round of scheduled auctions.
The policy would also include clubbing such popular blocks into fresh tranches of auctions to improve bidding prospects. Sources indicated that the legal fine-tuning of the policy is currently underway.
Currently, critical mineral blocks are listed for auction under a reverse bidding mechanism, where companies compete for exploration licenses by offering the lowest percentage share of the auction premium due from the eventual mining leaseholder of the explored block.
The policy of bidding down for the exploration license incentivises the exploration of critical minerals while maximizing government revenue from their extraction.
India has identified 24 critical minerals, including lithium, graphite, tin, tungsten, bauxite, molybdenum, and vanadium, most of which are imported. In December 2024, India’s Minister for Coal and Mines, G. Kishan Reddy, informed Parliament that 24 out of the 48 blocks put up for e-auction had been successfully auctioned.
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(Edited by : Anand Singha)
