UPSC Prelims Practice Questions — India Achieves Historic Milestone of 200 Mineral Block Auctions in FY 2025–26
Q1. Under the framework established by the MMDR Amendment Act, 2015, the rate of contribution payable to the National Mineral Exploration Trust (NMET) by a holder of a mining lease is what percentage of the royalty payable?
Q2. After the MMDR Amendment Act, 2015 made auction the method for granting concessions, the auction of mineral blocks for major minerals (other than those reserved for the Centre) is conducted primarily by which authority?
- A. The respective State Governments
- B. The Geological Survey of India
- C. The Ministry of Coal
- D. MSTC Limited on behalf of the Union Cabinet
Q3. With reference to the MMDR Amendment Acts of 2015 and 2023, consider the following statements:
1. The 2015 amendment introduced auction as the method for granting mineral concessions, replacing the first-come-first-served regime.
2. The 2023 amendment empowered the Central Government to exclusively auction the 24 critical and strategic minerals listed in Part D of Schedule-I.
3. The 2023 amendment created the District Mineral Foundation (DMF) and the National Mineral Exploration Trust (NMET).
Which of the statements given above is/are correct?
- The 2015 amendment introduced auction as the method for granting mineral concessions, replacing the first-come-first-served regime.
- The 2023 amendment empowered the Central Government to exclusively auction the 24 critical and strategic minerals listed in Part D of Schedule-I.
- The 2023 amendment created the District Mineral Foundation (DMF) and the National Mineral Exploration Trust (NMET).
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q4. The MMDR Amendment Act, 2023 de-listed six minerals from the list of atomic minerals so as to permit their exploration and mining by the private sector. With reference to the following, which one is NOT among those six de-listed minerals?
1. Beryllium
2. Zirconium
3. Thorium
4. Niobium
Which of the above is/are NOT correct?
- Beryllium
- Zirconium
- Thorium
- Niobium
- A. 1 and 3
- B. 3 only
- C. 2 and 4
- D. 1, 2 and 4
Q5. Under the MMDR framework, the term 'Composite Licence (CL)' most precisely refers to which one of the following?
- A. A prospecting licence-cum-mining lease — a two-stage concession permitting prospecting followed seamlessly by mining once reserves are established
- B. A single licence permitting the simultaneous extraction of two or more associated minerals from one lease area
- C. A permit authorising reconnaissance and prospecting operations but expressly excluding extraction
- D. A lease jointly granted to a public sector undertaking and a private company for shared mining
Q6. The District Mineral Foundation (DMF), a body for the benefit of persons in areas affected by mining, was provided for by an amendment to the MMDR Act, 1957 carried out in which year?
- A. 2015
- B. 1957
- C. 2021
- D. 2023
Q7. With reference to the District Mineral Foundation (DMF) and the National Mineral Exploration Trust (NMET), consider the following statements:
1. The DMF is established by the State Government for the benefit of persons and areas affected by mining-related operations.
2. The NMET is set up to fund regional and detailed exploration of non-coal minerals.
3. A holder of a mining lease contributes 2% of royalty to the DMF and 30% of royalty to the NMET.
Which of the statements given above is/are correct?
- The DMF is established by the State Government for the benefit of persons and areas affected by mining-related operations.
- The NMET is set up to fund regional and detailed exploration of non-coal minerals.
- A holder of a mining lease contributes 2% of royalty to the DMF and 30% of royalty to the NMET.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q8. India's first-ever list identifying 30 minerals as 'critical minerals' for the country was released in which year?
- A. 2023
- B. 2019
- C. 2021
- D. 2025
Q9. With reference to India's record mineral block auctions in FY 2025–26, consider the following statements:
1. A total of 200 mineral blocks were auctioned, the highest ever in a single financial year.
2. The 200 blocks comprised 123 Mining Leases and 77 Composite Licences.
3. Limestone was the most auctioned mineral, accounting for 76 blocks.
4. Coal accounted for the largest single share of the blocks auctioned during the year.
Which of the statements given above is/are NOT correct?
- A total of 200 mineral blocks were auctioned, the highest ever in a single financial year.
- The 200 blocks comprised 123 Mining Leases and 77 Composite Licences.
- Limestone was the most auctioned mineral, accounting for 76 blocks.
- Coal accounted for the largest single share of the blocks auctioned during the year.
- A. 1 and 2
- B. 4 only
- C. 3 and 4
- D. 2 only
Q10. The National Mineral Policy, 2019, which emphasises sustainable and zero-waste mining, was formulated and is administered by which one of the following?
- A. The Ministry of Mines
- B. The Ministry of Mines and the Ministry of Coal jointly, which alone regulate all mineral resources in India
- C. The Ministry of Environment, Forest and Climate Change
- D. NITI Aayog
Q11. With reference to the National Critical Mineral Mission (NCMM), consider the following statements:
1. The Mission was launched in January 2025.
2. It has an outlay of about Rs.34,300 crore spread over seven years.
3. Khanij Bidesh India Ltd (KABIL) is tasked with acquiring critical mineral assets abroad under the Mission.
4. The Mission is implemented by the Ministry of Heavy Industries.
Which of the statements given above is/are NOT correct?
- The Mission was launched in January 2025.
- It has an outlay of about Rs.34,300 crore spread over seven years.
- Khanij Bidesh India Ltd (KABIL) is tasked with acquiring critical mineral assets abroad under the Mission.
- The Mission is implemented by the Ministry of Heavy Industries.
- A. 1 and 2
- B. 4 only
- C. 3 and 4
- D. 2 only