Critical Minerals are playing a vital role in achieving Prime Minister Narendra Modi’s Vision of Viksit Bharat 2047: Union Minister G Kishan Reddy

1. At a Glance

• Critical minerals (e.g., lithium, cobalt, REEs, graphite, tungsten) are inputs essential to clean energy, EVs, defence, and semiconductors; supply concentration in a few countries makes them a strategic vulnerability [S1][S2].
• India has notified 30 critical minerals (2023) and runs sequential e-auctions of critical & strategic mineral blocks under the MMDR (Amendment) Act, 2023 [S3][S4].
• Why it matters for UPSC: intersects GS-III (economy, energy security), GS-II (international relations — MSP, KABIL deals), and current affairs (NCMM, auction tranches).

2. Why in the News

• On 23 March 2026, Union Minister of Coal & Mines G. Kishan Reddy launched the 7th tranche of e-auction of critical & strategic mineral blocks at New Delhi, framing critical minerals as central to Viksit Bharat 2047 [S1][S3].
• Blocks on offer include REEs, Tungsten, Lithium, Graphite, Vanadium, Titanium, Glauconite, Rock Phosphate [S3].
• Tender sale began 30 March 2026; bid submission deadline 25 May 2026 via two-stage ascending forward online auction [S3].

3. Background & Evolution

• 2023: Ministry of Mines released list of 30 critical minerals based on report of an expert committee [S4].
• MMDR (Amendment) Act, 2023 — empowered Central Government to exclusively auction 24 critical & atomic minerals (earlier with states); also created Exploration Licence (EL) regime [S4].
• First tranche of critical mineral auction launched 29 Nov 2023 [S5 implied via tranche progression].
• National Critical Mineral Mission (NCMM) approved by Union Cabinet on 29 January 2025 with outlay ₹16,300 crore over 7 years (FY 2024-25 to 2030-31) + expected ₹18,000 crore PSU investment [S2].
• Tranches I–VI progressively rolled out 2023-2025; Tranche V included India's first potash blocks; Tranche VII launched March 2026 [S3].

4. Core Static Facts

• Nodal Ministry: Ministry of Mines (Union Minister: G. Kishan Reddy; MoS: Satish Chandra Dubey) [S3].
• Enabling law: Mines and Minerals (Development & Regulation) Act, 1957, as amended in 2023 [S4].
• Critical minerals list (2023): 30 minerals — incl. lithium, cobalt, nickel, graphite, tin, tungsten, REEs, niobium, beryllium, tantalum, zirconium [S4].
• NCMM outlay: ₹16,300 crore (Govt) + ₹18,000 crore (PSU) over 7 years [S2].
• GSI mandate under NCMM: 1,200 exploration projects between 2024-25 and 2030-31 [S2].
• Recycling incentive corpus: ₹1,500 crore; pilot mineral recovery (tailings/red-mud/fly-ash): ₹100 crore [S2].
• Critical Mineral Recycling Scheme: 58 companies declared eligible [S6].
• Auction mechanism: online two-stage ascending forward auction; winning bid = highest % of value of mineral despatched [S3].

5. Multi-Dimensional Analysis

• Economic: Auction royalties + percentage-of-mineral-value model boost state revenues; reduces import dependence (India imports ~100% of Li, Co, Ni) [S2][S3].
• Geopolitical/Strategic: India joined Mineral Security Partnership (MSP) (2023); KABIL (Khanij Bidesh India Ltd) acquiring lithium blocks abroad (Argentina); counters Chinese dominance in REE/Li processing [S2].
• Environmental: NCMM emphasises recycling & recovery from tailings to limit fresh mining footprint; minerals critical for India's 500 GW non-fossil capacity by 2030 target [S2].
• Scientific/Technological: GSI-led exploration intensification; pilot tech for extraction from secondary sources [S2].
• Administrative/Federal: 2023 MMDR amendment centralised auction of 24 critical minerals — friction with state revenue rights but justified by strategic urgency [S4].

6. Recent Developments (last 12-18 months)

• 29 Jan 2025: Cabinet approval of NCMM [S2].
• 2025: Tranche VI launched; roadshows under "Yahi Samay Hai, Sahi Samay Hai" campaign by Min. Kishan Reddy [S7].
• 23 Mar 2026: 7th tranche launched — REE, W, Li, Graphite, V, Ti, Glauconite, Rock Phosphate blocks [S1][S3].
• 2025-26: 58 firms onboarded under Critical Mineral Recycling Scheme [S6].

7. Prelims Hooks

• Nodal ministry for critical minerals auction: Ministry of Mines (not MoEFCC, not MoP) [S3].
• Statutory base: MMDR Act, 1957, amended in 2023 [S4].
• NCMM approved by Cabinet on 29 January 2025; outlay ₹16,300 crore / 7 years [S2].
• GSI to execute 1,200 exploration projects under NCMM by 2030-31 [S2].
• India's notified critical minerals list contains 30 minerals (2023) [S4].
• KABIL = Khanij Bidesh India Ltd (JV of NALCO, HCL, MECL) — overseas mineral acquisition arm [S2].
• Tranche V auctioned India's first-ever potash blocks [S8].
• 7th tranche launched on 23 March 2026 by G. Kishan Reddy [S1].
• Auction model: two-stage ascending forward online auction; bid parameter = % value of mineral despatched [S3].
• India is a member of the Mineral Security Partnership (MSP) — US-led, joined 2023.
• Recycling incentive under NCMM: ₹1,500 crore [S2].

8. Mains Relevance

• GS-III: Indian Economy → Infrastructure/Energy; Science & Tech → indigenisation; Environment → clean energy transition.
• GS-II: International Relations → resource diplomacy (MSP, Quad critical minerals initiative).
• Plausible stems: 1. "Critical minerals are the 'new oil' of the 21st century. Examine India's strategy to secure their supply, with reference to the National Critical Mineral Mission." (GS-III) 2. "Discuss how the MMDR (Amendment) Act, 2023 alters Centre-State dynamics in mineral governance." (GS-II) 3. "Evaluate the role of overseas mineral acquisitions (KABIL) and multilateral partnerships (MSP) in India's energy transition." (GS-III)

9. Related Topics to Study Next

• MMDR (Amendment) Act, 2023 — statutory backbone of reforms.
• National Critical Mineral Mission (NCMM) — flagship policy.
• KABIL & Mineral Security Partnership (MSP) — overseas dimension.
• Geological Survey of India (GSI) — exploration agency.
• EV/Battery ecosystem & PLI (ACC) — demand-side driver.
• Rare Earth Elements & IREL — strategic minerals PSU.
• India's 500 GW non-fossil target / Panchamrit — energy transition link.
• District Mineral Foundation (DMF) & PMKKKY — distributional aspect of mining.

10. Common Errors / Trap Areas

• Confusing "critical minerals" (30 minerals) list with "strategic minerals" / atomic minerals under Part B of First Schedule of MMDR.
• NCMM outlay is ₹16,300 cr (govt) — not ₹34,300 cr (that figure conflates govt + PSU investment) [S2].
• Auction of critical minerals is by Centre, not states, post-2023 amendment [S4].
• KABIL ≠ NMDC; KABIL focuses overseas; NMDC is iron ore PSU.
• 7th tranche launched in March 2026, not 2025; minister is Kishan Reddy (Coal & Mines), not Pralhad Joshi.

11. Sources

• [S1] Critical Minerals are playing a vital role in achieving PM Modi's Vision of Viksit Bharat 2047: Union Minister G Kishan Reddy — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2244110 — (tier 1)
• [S2] Cabinet Approves National Critical Mineral Mission — https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2097309 — (tier 1)
• [S3] Ministry of Mines to Launch Seventh Tranche of Auction of Critical and Strategic Minerals — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2243514 — (tier 1)
• [S4] National Critical Mineral Mission (overview) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2120525 — (tier 1)
• [S5] Mines Ministry Launches First Ever Auction of Critical and Strategic Minerals — https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1981041 — (tier 1)
• [S6] India Advances Critical Mineral Security: 58 Companies Eligible for Recycling Scheme — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2256977 — (tier 1)
• [S7] "Yahi Samay Hai, Sahi Samay Hai" — Kishan Reddy Roadshow — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2251596 — (tier 1)
• [S8] Ten Critical and Strategic Mineral Blocks Auctioned in Tranche V (incl. first potash) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2131723 — (tier 1)