(MENAFN) In a significant move, India is poised to conduct its inaugural auction of deposit blocks housing critical and strategic minerals, marking a groundbreaking initiative to spur economic growth and enhance national security. The Ministry of Mines announced that the first tranche of auctions, featuring 20 blocks with evidence of minerals such as lithium and graphite, is set to commence on Wednesday.
The auction, conducted through an open ascending price format, will take place online, allowing private miners to bid for the rights to explore and extract these valuable minerals. The deposits are geographically dispersed across the country, and comprehensive details about the blocks and auction terms are accessible through the designated auctioneer's platform.
The Indian government views this auction as a milestone initiative with the potential to significantly boost the economy, fortify national security, and support the country's transition to a clean energy future. Critical and strategic minerals identified by the government include lithium, cobalt, titanium, graphite, and rare earth elements, which find applications in crucial sectors such as renewable energy, electronics, pharmaceuticals, telecommunications, transport, and defense.
The proactive stance on securing a stable supply of lithium, vital for electric vehicle battery manufacturing, has been evident in India's recent efforts. In February, the discovery of the first lithium deposits in the state of Jammu and Kashmir, estimated at 5.9 million tonnes, marked a significant breakthrough. Further reinforcing the commitment to resource exploration, the country introduced reforms in July, opening avenues for private mining companies to prospect for minerals.
The auction reflects India's strategic vision to harness its domestic mineral wealth, reduce dependency on imports, and stimulate economic activity in key sectors. As the nation positions itself at the forefront of the global transition towards sustainable energy and technology, the successful outcome of this auction is anticipated to play a pivotal role in advancing India's self-reliance and resource security objectives.
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