New Delhi, Feb 28 (KNN) Union Minister of Coal and Mines G Kishan Reddy announced today that the Ministry of Mines will launch the first tranche auction of Exploration License blocks in March 2025.
Speaking at a press conference in New Delhi, the Minister noted that this initiative follows the 2023 amendment to the MMDR Act, which introduced provisions for granting Exploration Licenses for critical and deep-seated minerals through auction.
Reddy also revealed that Assam, Jammu & Kashmir, and Kerala will soon join the mineral auction regime, expanding India’s mineral auction map to 17 states.
The Geological Survey of India has significantly increased its exploration activities, undertaking 438 projects in the 2024-25 field season, including 195 focused on critical minerals.
This represents a substantial increase from the previous field season’s 360 projects. Advanced technologies, including heliborne geophysical surveys, AI/ML tools, and drone technologies, have been deployed to accelerate data acquisition and mineral discovery.
For the upcoming 2025-26 field season, GSI plans to further expand its efforts with 450 exploration projects, of which 227 will target critical minerals.
Mineral Exploration Corporation Limited has enhanced its operational efficiency, increasing exploratory drilling by 35 percent and delivering 33 geological reports in 2024 to strengthen the National Mineral Inventory.
Meanwhile, the National Mineral Exploration Trust approved 146 exploration and procurement projects worth Rs 712 crore between January 2024 and January 2025, introducing innovative schemes such as partial reimbursement of exploration expenses and funding for private exploration agencies.
Private sector participation in mineral exploration has been bolstered with the addition of 12 new Notified Private Exploration Agencies in 2024, bringing the total to 28.
Policy reforms have also been implemented, including the relaxation of guidelines for exploration in border areas, removing restrictions beyond 20 km from the border and streamlining processes within 20 km in coordination with the Ministry of Defence.
The ministry is strengthening technology and data-driven decision-making capabilities, with the Geological Survey of India establishing an AI-enabled Data Processing Centre in Bengaluru to enhance mineral targeting through AI/ML technologies.
This effort is complemented by initiatives such as the Mineral Exploration Hackathon held in July 2024, which promoted emerging technologies for geophysical data analysis and the integration of multiple exploration datasets.
Additionally, the Mining Tenement System has been enhanced with new modules, including one for average sale price based on real-time data launched in January 2024.
Strategic initiatives for critical minerals include the approval of the National Critical Mineral Mission with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore.
The mission focuses on domestic production, recycling, overseas acquisitions, and research and development. A new Tailings Policy will be introduced to recover critical minerals such as Gallium, Tellurium, and Selenium from overburden dumps and tailings, ensuring resource optimisation.
Since 2024, 335 mineral blocks have been put up for auction, with 106 successfully auctioned. First-time auctions were conducted in Telangana, Bihar, and Arunachal Pradesh, expanding India’s mineral auction landscape to 14 states.
A dedicated Project Management Unit has been established to expedite the operationalisation of auctioned mines, with professionals stationed in Delhi and across different states to monitor progress, identify bottlenecks, and facilitate coordination among stakeholders.
The ministry plans to introduce a State Mining Index in 2025 to evaluate states on parameters such as regulatory environment, technical expertise, and sustainability practices.
This index is expected to be released in the second quarter of 2025. The National Mining Ministers’ Conference, held in Bhubaneswar in January 2025, facilitated discussions on auction performance, regulatory frameworks, and state best practices.
To commemorate the 175th anniversary of the Geological Survey of India, a year-long celebration will be held from March 2025 to March 2026, featuring international and national seminars, outreach programs, and cultural events.
The Ministry of Mines remains committed to fostering a robust and sustainable mining sector through continuous innovation, policy reforms, and collaborative engagement with industry stakeholders.
(KNN Bureau)
