India's auction of critical minerals takes center stage | Fusion - WeRIndia

In a significant move aimed at bolstering economic development and ensuring national security, the Indian government is set to launch the first round of auctions for 20 blocks of critical and strategic minerals.

These minerals, crucial for sectors like renewable energy, defence, and agriculture, play a pivotal role in India’s journey towards a clean energy future.

The auction, scheduled for Wednesday, will employ a two-stage ascending forward auction process. Also, it marks a shift towards online platforms for such crucial transactions.

The sale of tender documents commences on Wednesday, with details about the mineral blocks, auction terms, and timelines available on the MSTC auction platform.

With a consistently high demand for critical and strategic minerals, often met through imports, this auction stands as a landmark initiative.

These minerals include lithium, graphite, titanium, and rare earth elements (REE). They are indispensable for economic development, national security, and the success of sectors vital to India’s growth.

Recognizing the potential supply chain vulnerabilities associated with the lack of availability or concentration of extraction in a few countries, the government underscores the significance of securing a domestic supply.

The global economy’s future relies heavily on technologies dependent on these critical minerals, making India’s initiative a strategic move.

India’s commitment to achieving 50% of cumulative electric power installed capacity from non-fossil sources by 2030 is a driving force behind the demand for these minerals.

As the nation embraces an ambitious energy transition plan, the demand for electric cars, renewable energy projects, and battery storage systems is set to surge. They emphasize the need for a secure and robust supply of critical minerals.

Recently, 24 minerals were designated as critical and strategic through an amendment in the mining rule. It underscores the government’s focus on securing these resources.

The revenue generated from these auctions will flow directly to the states, providing an additional economic boost at the regional level.

The auction of critical and strategic minerals is not just a commercial endeavour; it’s a strategic move that aligns with India’s broader goals of economic growth, energy transition, and national security.

As the nation positions itself at the forefront of the global economy, these auctions play a pivotal role in shaping a resilient and self-reliant future.

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