Union Minister Shri G. Kishan Reddy Launched 2nd Tranche of Exploration Licence Blocks

1. At a Glance

• 2nd Tranche of Exploration Licence (EL) Blocks launched on 12 February 2026 by Union Minister of Coal & Mines Shri G. Kishan Reddy at CSOI, New Delhi — comprises 11 critical & deep-seated mineral blocks across 8 States [1][2].
• EL is a new mineral concession introduced by the MMDR Amendment Act, 2023, allowing private players to undertake reconnaissance + prospecting (G4–G3 stages) of critical/deep-seated minerals via auction [3].
• Strategically targets import-substitution in critical minerals (Li, Co, Ni, REE, PGE, etc.) essential for EV, clean-energy, defence & semiconductor value chains — anchor for Viksit Bharat 2047 mineral self-reliance [1].

2. Why in the News

• 12 Feb 2026: 2nd Tranche of EL auction launched, offering 11 blocks of critical & deep-seated minerals across 8 States; pitched as part of "structured, transparent, technology-driven" exploration framework [1][2].
• Follows the maiden EL auction launched in Goa (1st tranche, mid-2024) — first-ever in India's mineral sector [4].

3. Background & Evolution

• MMDR Act, 1957 — parent legislation governing mineral concessions in India [3].
• 2015 Amendment — introduced auction-only allocation of mineral concessions [3].
• MMDR Amendment Act, 2023 (w.e.f. 17 August 2023) — (i) inserted Seventh Schedule listing 29 deep-seated minerals eligible for EL; (ii) empowered Centre to exclusively auction the 24 critical & strategic minerals in Part D of First Schedule; (iii) created the Exploration Licence concession [3].
• June 2024: India's first-ever EL auction launched in Goa (1st tranche) alongside an AI-Driven Mineral Targeting Hackathon [4].
• 12 Feb 2026: 2nd Tranche launched [1].
• Parallel track: 7 tranches of Critical & Strategic Mineral Block auctions (ML/CL) since Nov 2023 [5].

4. Core Static Facts

• Nodal Ministry: Ministry of Mines (Union Minister: Shri G. Kishan Reddy, also holds Coal) [1].
• Statutory base: Section 10A & Seventh Schedule of MMDR Act, 1957 (as amended 2023) [3].
• Eligible minerals under EL: 29 deep-seated/critical minerals (Seventh Schedule) incl. gold, silver, copper, lead, zinc, diamond, cobalt, nickel, PGE, REE, molybdenum, lithium, tin, tungsten, etc. [3].
• EL Tenure: 5 years (extendable by 2 yrs); covers G4 → G3 exploration stages [3].
• EL Holder Reward: entitled to a share in auction premium when the explored area is later auctioned as a Mining Lease [3].
• 2nd Tranche scope: 11 blocks, 8 States [1].
• Auction platform: MSTC e-auction portal; technical body — GSI / NMET (National Mineral Exploration Trust) [5].
• Royalty rates for 12 critical minerals (Be, Cd, Co, Ga, In, Re, Se, Ta, Te, Ti, W, V) approved by Cabinet — Oct 2023 [6].

5. Multi-Dimensional Analysis

Economic

• Reduces forex outgo on imported critical minerals (India is 100% import-dependent for Li, Co, Ni, Nb, Be, Ta) [5].
• De-risks private investment by socialising exploration risk through EL framework — junior exploration companies enter the value chain [3].

Strategic / Geopolitical

• Aligns with Critical Minerals List (2023, 30 minerals) of MoM and KABIL overseas acquisition strategy [5].
• Counters Chinese dominance in REE & battery-mineral supply chains; secures inputs for EV (FAME), Solar (PLI), Semiconductor Mission [5].

Legal / Federal

• EL granted by State Government but blocks for the 24 listed critical minerals are auctioned by the Centre (Section 10(B)(4) post-2023) — partial recentralisation [3].
• Royalty accrues to State; auction premium shared with EL holder [3].

Scientific / Technological

• Embedded AI-driven Mineral Targeting Hackathon (Goa, 2024) — use of AI/ML on GSI geo-data [4].
• Encourages junior exploration firms modelled on Australia/Canada systems [3].

Environmental

• Deep-seated mineral mining raises concerns on forest diversion, tribal displacement (Fifth Schedule areas); requires FC Act, 1980 & PESA, 1996 compliance.

6. Recent Developments (last 12-18 months)

• June 2024 — 1st EL auction launched at Goa (maiden EL tranche + AI Hackathon) [4].
• 2024 — Tranche IV of Critical Mineral block auctions concluded; first tungsten & cobalt blocks auctioned; NE India entered mineral auction map [5].
• 2025 — Tranche V auctioned 10 blocks incl. first 2 potash blocks; 6th & 7th tranches launched subsequently [5].
• 12 Feb 2026 — 2nd Tranche of EL launched: 11 blocks / 8 States [1].

7. Prelims Hooks

• Exploration Licence introduced via MMDR Amendment Act, 2023 (effective 17 Aug 2023) [3].
• EL covers 29 minerals under Seventh Schedule of MMDR Act [3].
• Centre exclusively auctions 24 critical & strategic minerals under Part D, First Schedule [3].
• India's first EL auction launched in Goa (2024) [4].
• 2nd Tranche launched on 12 Feb 2026 by G. Kishan Reddy — 11 blocks, 8 States [1].
• Nodal Ministry: Ministry of Mines (not MoEFCC / Coal Ministry) [1].
• NMET (National Mineral Exploration Trust) funds exploration; GSI is the principal exploration agency [5].
• Cabinet approved royalty for 12 critical minerals (Be, Cd, Co, Ga, In, Re, Se, Ta, Te, Ti, W, V) — Oct 2023 [6].
• E-auction conducted on MSTC portal [5].
• EL holder receives a share of auction premium of the eventual ML — incentive mechanism [3].
• Parallel statute for offshore: Offshore Areas Mineral (Development & Regulation) Amendment Act, 2023 [3].

8. Mains Relevance

• GS-III: Indian Economy — Mineral resources, infrastructure; Science & Tech (clean energy supply chains); Security (strategic minerals).
• GS-II: Government policies & interventions; Centre-State relations on mineral concessions.
• Possible question stems:
• "The Exploration Licence regime introduced by the MMDR Amendment Act, 2023 is a structural reform towards India's critical mineral security. Discuss."
• "Examine the federal implications of the Centre's exclusive power to auction critical and strategic mineral blocks."
• "Critical minerals are the new oil. Evaluate India's institutional and policy preparedness for securing their supply chains."

9. Related Topics to Study Next

• MMDR Amendment Act, 2023 — parent reform.
• Critical Minerals List (30 minerals, 2023) — defines scope.
• KABIL (Khanij Bidesh India Ltd.) — overseas mineral acquisitions.
• National Mineral Policy, 2019 — overarching framework.
• NMET & GSI — exploration institutions.
• Offshore Areas Mineral (DR) Amendment Act, 2023 — parallel offshore regime.
• PESA 1996 & FRA 2006 — tribal/forest interface with mining.
• PLI Schemes (ACC battery, solar, semiconductors) — demand-side pull for critical minerals.

10. Common Errors / Trap Areas

• EL ≠ Mining Lease ≠ Composite Licence: EL only authorises reconnaissance + prospecting, not mining.
• Confusion between Seventh Schedule (29 deep-seated minerals for EL) and Part D of First Schedule (24 critical minerals auctioned by Centre) — overlapping but distinct lists.
• EL is granted by State, but the auction is conducted by the Centre for listed minerals — frequently mis-stated.
• Don't confuse with Coal block auctions (separate regime under CMSP Act, 2015) — Kishan Reddy holds both portfolios.
• The 2nd tranche pertains to EL blocks (11), not the parallel Critical Mineral ML/CL tranches (which had reached the 7th tranche by 2026).