- Why in news
- On 31 August 2026 the Ministry of Mines held a roadshow in Raipur for the 8th Tranche of Critical and Strategic Mineral Blocks auction. Five of the 20 blocks in the tranche are in Chhattisgarh.
- What it is
- The Critical and Strategic Mineral Blocks auctions are tranche-wise e-auctions of mineral blocks run by the Ministry of Mines with State governments. They aim to build domestic supply of minerals needed for clean energy, electronics and defence, and to cut import dependence. Blocks are offered as Composite Licences (exploration plus mining) or Mining Leases.
- Tranche size
- The 8th Tranche has 20 mineral blocks: 17 Composite Licence blocks and 3 Mining Lease blocks, across nine States.
- Auction record so far
- 88 critical and strategic mineral blocks have been offered, and 56 have been successfully auctioned.
- Minerals on offer
- Blocks include graphite, rare earth elements, vanadium, gallium, titanium, molybdenum, tungsten, potash, phosphorite and glauconite.
- Exploration support
- The NMEDT scheme partially reimburses exploration expenses of Composite Licence holders.
- Unified Mining Portal
- The portal is meant to ease doing business and coordinate Centre and States for faster approvals and operationalisation.
- Legal basis
- Auctions of mineral blocks are conducted under the Mines and Minerals (Development and Regulation) Act, 1957, as amended in 2015 and 2023.
- Size of the eighth tranche
- 20 blocks are on offer: 13 newly identified and 7 under the Second Attempt.
- Cumulative progress
- Across all tranches, 88 critical mineral blocks have been offered and 56 auctioned so far, as stated by the Ministry's Secretary.
- Auction method
- Online two-stage ascending forward auction. The preferred bidder is the one quoting the highest percentage of the value of mineral dispatched.
- Total auctioned
- 56 critical and strategic mineral blocks have been auctioned out of 88 unique blocks taken up by the Centre, a success rate of over 63%.
- Seventh Tranche
- The NIT was issued on 23 March 2026 offering 19 blocks. Ten were auctioned, with first-time blocks in Gujarat, Uttarakhand and Telangana.
- Exploration Licence
- The second EL tranche extended the framework to Arunachal Pradesh, Uttar Pradesh and Odisha for the first time. Cumulative EL blocks auctioned by the Centre are 11.
- Minerals in tranche
- The Seventh Tranche included graphite, rare earth elements, vanadium, titanium, glauconite and rock phosphate.
- Who gets the revenue
- Auction revenue goes to the State Governments where the blocks lie, even though the Centre conducts the auction.
- Insurance Surety Bond
- The Mineral (Auction) Amendment Rules, 2026 allow an Insurance Surety Bond as an alternative to bank guarantees.
- Post-auction timelines
- The Mineral (Auction) Second Amendment Rules, 2025 streamlined the timelines for performance security, upfront payment and Letter of Intent.
Don’t confuse with Composite Licence vs Mining Lease: A Composite Licence covers both exploration (prospecting) and mining; a Mining Lease is for mining in an already explored block.
Don’t confuse with NMET vs NMEDT: The National Mineral Exploration Trust (NMET) funds exploration; the release names the NMEDT scheme for partial reimbursement of exploration costs for Composite Licence holders. Check the exact name when it is asked.
Don’t confuse with Exploration Licence vs Composite Licence: An Exploration Licence is for exploration of critical and deep-seated minerals. A Composite Licence covers both exploration and mining in one grant.
Don’t confuse with Mining Lease vs Composite Licence: A Mining Lease allows mining of a block that is already explored. A Composite Licence covers exploration first and then mining in one grant.
Don’t confuse with Forward vs reverse auction: In a forward auction, bidders compete upward, as here on the percentage of value of mineral dispatched. In a reverse auction, bidders compete downward on price.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Builds domestic supply of minerals for clean energy, electronics and strategic industries, reducing import dependence.
- Brings in private investment and State participation through transparent e-auctions.
- Builds domestic supply of minerals for clean energy, electronics and defence, cutting import dependence.
- Draws private investment and brings in State revenue through auction premiums.
- Builds domestic supply of minerals needed for clean energy, electronics and defence, cutting import dependence.
- Opens new states to exploration and draws private and public sector participation.
- Builds domestic supply of minerals for clean energy, electronics and defence, and cuts import dependence.
- Gives States revenue and draws private investment into exploration and mining.
Problems
- Many auctioned blocks are slow to start production; 32 of the 88 offered blocks were not auctioned.
- Moving from mining to processing and refining needs technology and supply chain capacity.
- Many blocks go unsold, so a Second Attempt is needed: 56 of 88 auctioned.
- Exploration risk, environmental and forest clearances, and local community concerns can delay mining.
- Only about 63% of blocks offered found bidders, so some blocks stay unsold.
- Auctioning a block does not ensure quick production, since clearances, exploration risk and processing capacity remain hurdles.
- Limited availability and geographical concentration of critical minerals make supply chains fragile.
- Blocks can stay unoperationalised because of delays in clearances, so auctions may not turn into output.
Way forward
- Speed up clearances through the Unified Mining Portal and regular Centre-State reviews.
- Link exploration support and auctions to processing, refining and value addition.
- Do more exploration so that blocks come with better data and draw more bids.
- Pair mining with processing, refining and recycling to build the full value chain.
- Strengthen exploration data, and processing and refining capacity along with auctions.
- Speed up clearances and give states a clear role, in line with the National Critical Mineral Mission.
- Speed up post-auction approvals and keep simplifying auction rules.
- Pair auctions with exploration, processing and recycling capacity.
Put in your answer
Value chain push: Officials stress moving beyond mining to processing, refining and value addition for resilient supply chains.
Auction progress: 88 critical mineral blocks offered across tranches, 56 auctioned: a data point on the reform's uptake and its limits.
Rare metal block: A West Bengal block offers lithium, cesium and rubidium, relevant to battery supply chains.
National Critical Mineral Mission: The auctions are cited as supporting the National Critical Mineral Mission's aim of cutting import dependence and building a pipeline of assets.
MMDR Act amendment, 2023: The amendment notified 24 critical and strategic minerals and enabled Central auctions of their leases and licences.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Roadshow for 8th tranche of auctions; auctions are a lasting topic but the roadshow is routine.
Worth revising until Prelims 2028: most news questions come within two years of the event.