Karnataka and Rajasthan launched India's first auction of exploration licenses (ELs) for critical and deep minerals on March 6, the mines ministry said. According to the ministry, on March 7, Karnataka started auctioning one block of gold, copper and lithium, while Rajasthan started auctioning three blocks of rare earth elements, rare metal and potash minerals.
Exploration license blocks are being auctioned for the first time in the country amid pressure from the central government to strengthen domestic supply of raw materials needed to support the transition to green energy. The license holder will locate blocks and identify areas that can be auctioned for mining lease. According to the ministry, the blocks discovered by the license holder can be directly auctioned for mining lease, which will provide better revenue to the state governments.
So far, the ministry has awarded 20 blocks to states including Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Telangana, Uttar Pradesh and Union Territories of Jammu and Kashmir and Ladakh. The exploration license holder will explore blocks and identify areas that can be auctioned for mining lease. The blocks discovered by the exploration license holder can be directly auctioned for mining lease, thereby providing better revenue to the state governments.
The preferred bidder in the exploration license auction will be selected through reverse bidding. Bidders will quote their share in the auction premium payable by the mining lease (ML) holder of the blocks they discover. The bidder with the lowest percentage will be the preferred bidder for the exploration license.
