For Prelims: Critical Minerals, Exploration Licence (EL), MMDR Act, 1957, Nodal Ministry, Total blocks auctioned so far (8 tranches), Tranche IX blocks on offer, Tranche III EL blocks on offer, Reform notification date
For Mains: Mineral security, energy transition, ease of doing business, private sector participation in exploration, self-reliant mineral ecosystem
Source:
PIB
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- Ministry of Mines launched Ninth Tranche of Critical Mineral Block Auction on 5 November 2026.
- 20 critical and strategic mineral blocks are on offer in Tranche IX.
- Third Tranche of Exploration Licence Auction includes 6 blocks.
- Mineral (Auction) Third Amendment Rules, 2026 were notified on 16 October 2026.
- Union Minister for Coal and Mines is G. Kishan Reddy.
Why in the news?
The Ministry of Mines launched the Ninth Tranche of auction for 20 critical and strategic mineral blocks and the Third Tranche for 6 Exploration Licence blocks. This move aims to boost domestic mineral security for clean energy, electric mobility, defence and advanced manufacturing, alongside reforms to improve auction success rates.
Summary
- Ninth Tranche of Critical and Strategic Mineral Blocks auction: 20 blocks offered across 8 states (Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, West Bengal) for minerals including REE, Vanadium, Gallium, Titanium, Tungsten, Potash and Glauconite.
- Third Tranche of Exploration Licence (EL) auction: 6 blocks offered across 6 states (Madhya Pradesh, Maharashtra, West Bengal, Rajasthan, Telangana, Gujarat) for minerals including Copper, Vanadium, REE, Potash and Halite.
- Reform: Mineral (Auction) Third Amendment Rules, 2026 (16 Oct 2026) reduces minimum technically qualified bidders for second round from three to two for Part D minerals, and Letters of Intent will be issued automatically via Unified Mining Portal.
Highlights
20 Critical Mineral Blocks in Tranche IX
Ministry of Mines auctions 20 blocks with minerals like Rare Earth Elements, Vanadium, Gallium, Titanium, Tungsten, Potash and Glauconite across 8 states.
6 Exploration Licence Blocks in Tranche III
Exploration Licences under Section 10BA, MMDR Act allow private investment in exploring 29 critical and deep-seated minerals before mining.
Auction Reforms Notified
Mineral (Auction) Third Amendment Rules, 2026 reduce minimum technically qualified bidders from 3 to 2 for Part D minerals; Letters of Intent automated via Unified Mining Portal.
Key Analysis and Impact
The launch of Tranche IX with 20 blocks and Tranche III with 6 EL blocks expands India's mineral exploration footprint across 9 states. The inclusion of minerals like Rare Earth Elements (REE), Vanadium, Gallium, Titanium, Tungsten, Potash and Glauconite directly supports sectors such as clean energy, electric mobility, advanced manufacturing, fertilizers, defence, aerospace and electronics. The reform reducing the minimum technically qualified bidders from 3 to 2 for Part D minerals addresses a key reason for blocks remaining unsold, improving auction outcomes. Automation of Letters of Intent through the Unified Mining Portal enhances ease of doing business.
Way Forward
The auction processes are open with bid submission deadline on 7 January 2027. Successful auctions will strengthen domestic mineral security, reduce import dependence, and support India's energy transition goals. Continued reforms and higher private sector participation in exploration through EL auctions will be critical for building a self-reliant mineral ecosystem.
Auction Types for Critical Mineral Blocks vs Exploration Licence Blocks
| Feature | Critical Mineral Blocks | Exploration Licence Blocks |
|---|---|---|
| Auction type | Two-stage ascending forward auction | Two-stage descending reverse auction |
| Winner selection | Highest percentage of revenue share | Lowest percentage share out of revenue share of future lessee |
Background GK
Textbook concepts you need to understand this news
- Critical Minerals
- Minerals essential for economic development and national security, whose supply chains are vulnerable to disruption. Examples: Rare Earth Elements, Lithium, Cobalt, Graphite, Vanadium.
- Exploration Licence (EL)
- A licence granted under Section 10BA of the MMDR Act to explore for 29 critical and deep-seated minerals, allowing private investment in exploration before mining begins.
- MMDR Act, 1957
- The Mines and Minerals (Development and Regulation) Act, 1957 is the principal legislation governing the mining sector in India, including auction of mineral concessions.
Facts to remember
Tap a card to see the answer. Try to recall it first.
How exams will ask this
- Data: 20 critical mineral blocks in Tranche IX, 6 EL blocks in Tranche III, 64% auction success rate in previous 8 tranches
- Nodal Body: Ministry of Mines
- Legal Point: Section 10BA, MMDR Act (Exploration Licence); Mineral (Auction) Third Amendment Rules, 2026
Don't make this mistake!
Examiners may swap 'Critical and Strategic Mineral Blocks' with 'Non-Critical Mineral Blocks' or confuse 'Composite Licence' with 'Exploration Licence'. They may also mix up the auction type: ascending forward auction for critical mineral blocks vs descending reverse auction for EL blocks.
Write these in mains answers
- Mineral security, energy transition, ease of doing business, private sector participation in exploration, self-reliant mineral ecosystem
Stuck? Get it in one tap
The government is auctioning rights to explore and mine minerals like rare earth elements, vanadium and tungsten that are needed for things like electric car batteries and defence equipment. In this new round, 20 mining blocks and 6 exploration blocks are being sold. A new rule makes it easier for companies to qualify for the auction, so more blocks get sold instead of remaining unsold.
- Ministry of Mines launched Ninth Tranche of Critical Mineral Block Auction on 5 November 2026.
- 20 critical and strategic mineral blocks are on offer in Tranche IX.
- Third Tranche of Exploration Licence Auction includes 6 blocks.
- Mineral (Auction) Third Amendment Rules, 2026 were notified on 16 October 2026.
- Union Minister for Coal and Mines is G. Kishan Reddy.
- Economy: Mineral Policy and Mining Sector
- Governance: Government Policies and Interventions
Related concepts: Critical Minerals, Exploration Licence (EL), MMDR Act, 1957
Practice questions
Pick an answer, then read the explanation.
- Q1Easy
Which ministry is responsible for the auction of critical and strategic mineral blocks in India?
Explanation: The Ministry of Mines is the nodal ministry for the auction of critical and strategic mineral blocks under the MMDR Act. The Ministry of Coal handles coal blocks, Ministry of Steel deals with steel policy, and Ministry of Commerce and Industry handles trade and industrial policy.
- Q2Hard
Consider the following statements regarding the Ninth Tranche of Critical Mineral Block Auction:
- 1.A total of 20 critical and strategic mineral blocks are being auctioned in this tranche.
- 2.The auction uses a descending reverse auction mechanism for critical mineral blocks.
- 3.The reform reduces the minimum number of technically qualified bidders from three to two for Part D minerals.
Which of the statements given above is/are correct?
Explanation: Statement 1 is correct: 20 blocks are on offer in Tranche IX. Statement 2 is incorrect: critical mineral blocks are auctioned through a two-stage ascending forward auction, not descending reverse. Statement 3 is correct: the Third Amendment Rules, 2026 reduce the minimum technically qualified bidders from three to two for Part D minerals. Hence option C is correct.
- Q3Medium
How many critical and strategic mineral blocks had been successfully auctioned in the previous eight tranches?
Explanation: In the previous eight tranches, 100 unique blocks were offered, of which 64 were successfully auctioned (64% success rate). 20 is the number of blocks in Tranche IX, 11 is the number of EL blocks auctioned in two tranches.
- Q4Medium
What is the primary objective of introducing Exploration Licences under Section 10BA of the MMDR Act?
Explanation: Exploration Licences allow private sector participation in exploring 29 critical and deep-seated minerals even before mining starts. They do not grant mining rights, nor are they primarily about revenue or restricting foreign participation. The core objective is to open up exploration to private industry.
Frequently asked questions
1. How many critical mineral blocks are being auctioned in Tranche IX?
20 critical and strategic mineral blocks are being auctioned in Tranche IX, across 8 states.
2. What reform was notified to improve auction outcomes?
The Mineral (Auction) Third Amendment Rules, 2026 reduced the minimum number of technically qualified bidders from three to two for Part D minerals.
3. What is the deadline for submitting bids for these auctions?
The last date for submission of bids (Technical Bid and Initial Price Offer) is 7 January 2027.
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- Original5 November 2026 · Read story
