☀️ Schemes
Only 125 of 733 auctioned mineral blocks are working, Centre tells states
In 60 seconds: India is struggling to start most of its auctioned mines even as the world races for critical minerals. Of 733 blocks auctioned by states, only 125 were operating as of August 2026, the Centre has told states. It takes over seven years from auction to production for major and critical minerals. The Centre wants a 'mission mode' push with states to secure supplies.
Why it matters
Critical minerals such as lithium, cobalt and rare earths go into batteries, electronics and defence. India relies heavily on imports, often linked to China.
Explain it simply
You win the licence for a new chai stall, but land papers, permits and the electricity connection take seven years. Meanwhile you keep buying tea from a rival. That is India's mining problem.
The 3-minute read
What happened
Concept notes from the coal and mines ministries, shared ahead of the sixth national conference of chief secretaries, say 'extreme domestic supply-chain vulnerabilities persist' due to high import reliance and scarce deep-drilling technology.
Background
India produces more than 95 minerals, and mining contributes over ₹1.9 lakh crore a year to governments, about 90% of it to states. Land acquisition is the biggest hurdle, along with disputed land records and the lack of land banks for compensatory afforestation.
How it works
The Centre suggests state-level facilitation cells, digitised land records, digital tracking to curb illegal mining, time-bound auctions and fewer overlapping state levies. It has urged states to frame rules to extract beach sand minerals like monazite, a source of rare earths.
What's next
The chief secretaries' conference will discuss these steps. Watch for faster clearances and more private exploration.
What it means for you
Your phone, an electric scooter and solar panels all depend on these minerals. Steady domestic supply could make them cheaper and more secure.
Key numbers
- 733: Mineral blocks auctioned by states
- 125: Blocks operating as of Aug 2026
- 7+ years: Auction to production for major minerals
- ₹1.9 lakh cr: Yearly mining revenue to governments
Both sides
- The Centre: States must clear land, permits and records quickly to secure mineral supplies.
- Mining companies: High costs, risky deep deposits and a lack of proven technology hold back investment.
Key terms explained
- Critical minerals
- Minerals vital for new technologies and security whose supply is at risk.
- Mission mode
- A focused, time-bound government push with clear targets and coordination.
The story so far
- 2023: Mining law amended; India lists 30 critical minerals. In 2023 the mines ministry identified 30 critical minerals, and an amendment to the MMDR Act let the Centre auction blocks of minerals such as lithium.
- Jan 2025: National Critical Mineral Mission approved. In January 2025 the Union Cabinet approved the National Critical Mineral Mission to boost exploration, mining, processing and recycling of critical minerals in India and abroad.
- Today: Only 125 of 733 auctioned blocks working
Exam notes (UPSC, SSC, Banking, PSC)
- India identified 30 critical minerals in 2023.
- The National Critical Mineral Mission was approved in January 2025.
- Monazite, found in beach sands of Kerala, Odisha and Tamil Nadu, contains rare earths and thorium.
- The MMDR Act stands for the Mines and Minerals (Development and Regulation) Act, 1957.
Likely exam question: What are critical minerals? Why does India struggle to convert auctioned mineral blocks into working mines?