UPSC Prelims Practice Questions — Ministry of Mines to Launch Seventh Tranche of Auction of Critical and Strategic Minerals

Q1. Consider the following statements regarding the Mines and Minerals (Development and Regulation) Amendment Act, 2023. Which of the statements given above is/are NOT correct?

  1. It came into force on 17 August 2023.
  2. It empowered the Central Government to exclusively auction Mining Leases and Composite Licences for minerals placed in Part D of the First Schedule.
  3. The entire revenue from the auction of these critical minerals accrues to the Central Government.
  4. It introduced a new Exploration Licence for deep-seated minerals listed in the newly inserted Seventh Schedule.
  • A. 1 only
  • B. 2 only
  • C. 3 only
  • D. 4 only

Q2. Consider the following statements comparing the tranches of the auction of critical and strategic mineral blocks. Which of the statements given above is/are correct?

  1. Tranche I was the first-ever auction of critical minerals in India.
  2. Tranche V included the first-ever auction of Potash blocks in India.
  3. The Seventh Tranche offered a larger number of blocks than Tranche I.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q3. Under which tranche of the auction of critical and strategic mineral blocks were Potash blocks put to auction for the first time in India?

  • A. Tranche IV
  • B. Tranche V
  • C. Tranche VI
  • D. Tranche VII

Q4. The new mineral concession known as the 'Exploration Licence', covering deep-seated minerals listed in the newly inserted Seventh Schedule, was introduced by which legislation?

  • A. MMDR Act, 1957 (as originally enacted)
  • B. MMDR Amendment Act, 2015
  • C. MMDR Amendment Act, 2023
  • D. MMDR Amendment Act, 2025

Q5. Following the 2023 amendment, the authority empowered to exclusively auction Mining Leases and Composite Licences for the critical minerals in Part D of the First Schedule is the:

  • A. Respective State Governments
  • B. Central Government (Ministry of Mines)
  • C. Geological Survey of India
  • D. National Mineral Exploration Trust

Q6. The provision of an Insurance Surety Bond as an alternative to bank guarantees in mineral block auctions was notified by which Ministry?

  • A. Ministry of Finance
  • B. Ministry of Mines
  • C. Ministry of Corporate Affairs
  • D. Insurance Regulatory and Development Authority of India

Q7. Which body, set up by the Central Government to fund regional and detailed mineral exploration with priority to strategic and critical minerals, had its mandate expanded in 2025 to also cover exploration outside India?

  • A. Geological Survey of India
  • B. National Mineral Exploration Trust
  • C. Mineral Exploration and Consultancy Limited
  • D. National Critical Mineral Mission

Q8. The expert committee constituted by the Ministry of Mines recommended how many minerals as 'critical minerals' for India?

  • A. 24
  • B. 29
  • C. 30
  • D. 49

Q9. How many critical and strategic minerals were inserted into Part D of the First Schedule of the MMDR Act, vesting their auction exclusively in the Central Government?

  • A. 12
  • B. 24
  • C. 29
  • D. 30

Q10. The Seventh Tranche of the auction of Critical and Strategic Mineral Blocks (2026) was launched by which Union Minister?

  • A. Shri Pralhad Joshi
  • B. Shri G. Kishan Reddy
  • C. Shri Satish Chandra Dubey
  • D. Shri Nitin Gadkari
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