Ministry of Mines to Launch Second Tranche of Exploration Licence Auctions

1. At a Glance

• Exploration Licence (EL) is a new mineral concession introduced by the MMDR Amendment Act, 2023 to enable private-sector reconnaissance + prospecting of 29 deep-seated and critical minerals [2][3].
• The 2nd Tranche of EL auctions was launched by the Ministry of Mines on 12 February 2026 at CSOI, New Delhi, covering 11 blocks across 8 States [1][4].
• Strategic significance: secures supply of critical minerals (Li, REE, Co, Ni, PGE etc.) essential for EV, semiconductor, renewable-energy and defence value chains — a recurring UPSC theme [2][3].

2. Why in the News

• Union Minister Shri G. Kishan Reddy (Coal & Mines) launched the Second Tranche of EL auctions on 12 Feb 2026 [1][4].
• The Ministry simultaneously unveiled the Next-Generation Digital Portal of the Geological Survey of India (GSI) for integrated data acquisition, analysis, visualisation and dissemination [1].
• Follow-on to the MMDR Amendment Act, 2025, effective 1 September 2025, which further deepened reforms in critical-mineral exploration [1].

3. Background & Evolution

• MMDR Act, 1957 — parent statute governing mineral concessions.
• 2015 Amendment — introduced auction-based allocation of mineral concessions.
• 17 Aug 2023 — MMDR Amendment Act, 2023 came into force; introduced Exploration Licence as a new concession; listed 24 critical & strategic minerals in Part D of First Schedule; empowered Centre to auction these [2].
• 29 Nov 2023 — 1st tranche of Critical & Strategic Mineral block auctions (20 blocks: Li, REE, Ni, PGE, Potash, Glauconite, Phosphorite, Graphite, Molybdenum) [3].
• 1st Tranche EL auction — launched subsequently after EL rules notified.
• 1 Sept 2025 — MMDR Amendment Act, 2025 in force [1].
• 12 Feb 2026 — 2nd Tranche EL auction launched [1][4].

4. Core Static Facts

• Implementing Ministry: Ministry of Mines (Union Minister: G. Kishan Reddy, also Coal) [1].
• Enabling Statute: Mines and Minerals (Development and Regulation) Act, 1957, as amended in 2023 & 2025 [1][2].
• Concession type: Exploration Licence — covers 29 deep-seated minerals including critical minerals; permits reconnaissance + prospecting [2].
• Auction Platform: MSTC portal (e-auction) [1].
• Funding support: National Mineral Exploration Trust (NMET) — partial reimbursement of eligible exploration expenditure to EL holders [1].
• 2nd Tranche scope: 11 blocks, 8 States, critical & deep-seated minerals [1].
• Critical Minerals List: 24 minerals notified in Part D, First Schedule, MMDR Act [2].
• 1st Tranche (Critical & Strategic Minerals, Nov 2023): 20 blocks — Li, REE, Ni, PGE, Potash, Glauconite, Phosphorite, Graphite, Molybdenum [3].

5. Multi-Dimensional Analysis

Economic

• Reduces import dependence on Li, Co, Ni, REE — currently >90% imported.
• Unlocks private-sector risk capital for greenfield exploration, hitherto dominated by GSI/MECL [2].
• NMET reimbursement de-risks junior exploration firms entering the sector [1].

Strategic / Geopolitical

• Aligns with National Critical Mineral Mission (NCMM) and KABIL's overseas acquisitions; counters Chinese dominance in REE/Li processing [2].
• Critical minerals underpin EV battery, semiconductor, defence, solar PV supply chains [2].

Legal / Constitutional

• Entry 54, Union List (regulation of mines in public interest) and Entry 23, State List (mines subject to Union law) [2].
• 2023 Amendment empowered Centre exclusively to auction the 24 critical minerals, overriding State auctioneer role [2].
• SC ruling in Mineral Area Development Authority (2024) on State taxation powers — adjacent jurisprudence.

Scientific / Technological

• GSI Next-Gen Digital Portal integrates geoscientific data — supports data-driven block delineation [1].
• EL incentivises modern geophysical / geochemical / drilling tech for deep-seated minerals [2].

Administrative / Federal

• Centre conducts auction; State Government grants the concession and receives royalty — cooperative federalism model [1][2].
• Roadshows + open-house sessions for stakeholder onboarding [1].

6. Recent Developments (12-18 months)

• Sept 2025 — MMDR Amendment Act, 2025 effective [1].
• 2025 — Mineral Concession Rules amended to allow inclusion of contiguous area & associated minerals in mining leases [4].
• 2025 — Seventh Tranche of Critical & Strategic Minerals auction launched [4].
• Feb 2026 — 2nd EL Tranche + GSI Next-Gen Digital Portal [1].

7. Prelims Hooks

• Exploration Licence is a concession under the MMDR Act, 1957 (introduced via 2023 Amendment) [2].
• EL covers 29 deep-seated minerals [2].
• 24 critical & strategic minerals listed in Part D, First Schedule, MMDR Act [2].
• MMDR Amendment Act, 2023 came into force on 17 August 2023 [2].
• MMDR Amendment Act, 2025 effective 1 September 2025 [1].
• 2nd EL Tranche launched 12 February 2026 at CSOI, New Delhi [1].
• 2nd Tranche covers 11 blocks across 8 States [1].
• 1st Tranche of Critical & Strategic Mineral auctions: 20 blocks, launched 29 Nov 2023 [3].
• e-Auction platform: MSTC [1].
• Exploration expenditure reimbursed via NMET (National Mineral Exploration Trust) [1].
• Union Minister of Coal and Mines: G. Kishan Reddy [1].
• GSI launched Next-Generation Digital Portal on 12 Feb 2026 [1].
• Auction for critical minerals is conducted by Central Government, not States [2].

8. Mains Relevance

• GS-III — Indian Economy (Infrastructure, Resources, Energy security); Science & Tech (critical minerals for EV/semiconductors).
• GS-II — Polity (cooperative federalism, Centre-State distribution of mineral powers).
• Question stems: 1. "Critically examine how the MMDR Amendment Acts of 2023 and 2025 have reshaped India's critical-mineral exploration regime." (GS-III) 2. "Securing critical minerals is as much a strategic imperative as it is an economic one. Discuss in the context of recent Exploration Licence auctions." (GS-III) 3. "The auctioning of critical mineral blocks by the Union exposes tensions in fiscal federalism. Analyse." (GS-II)

9. Related Topics to Study Next

• National Critical Mineral Mission (NCMM) — umbrella policy framework.
• KABIL (Khanij Bidesh India Ltd.) — overseas critical-mineral acquisition.
• Geological Survey of India (GSI) — premier exploration agency.
• MMDR Act, 1957 & Amendments (2015, 2021, 2023, 2025) — statutory base.
• Offshore Areas Mineral (Development & Regulation) Amendment Act, 2023 — companion offshore reform [2].
• MADA v. SAIL (2024) — SC ruling on State taxation of mineral rights.
• EV battery supply chain & semiconductor mission — demand-side linkage.
• Deep Ocean Mission & polymetallic nodules — alternative critical-mineral source.

10. Common Errors / Trap Areas

• EL ≠ Mining Lease ≠ Composite Licence: EL covers only reconnaissance + prospecting, not extraction.
• Number of critical minerals: 24 listed in Part D vs 30 in the broader Critical Minerals list released by Ministry of Mines (2023) — aspirants conflate them.
• 1st tranche (Nov 2023) was for Critical & Strategic Mineral blocks (mining auction), distinct from the EL Tranche-1 auction — do not merge.
• Auction of Part-D critical minerals is done by Centre, royalty accrues to State — not the reverse.
• GSI is under Ministry of Mines, not Ministry of Earth Sciences.