New Delhi, March 22 : G. Kishan Reddy will launch the seventh tranche of auction of critical and strategic mineral blocks on March 23, in a move aimed at strengthening Indiaâ??s mineral security and supporting clean energy goals, Ministry of Mines said on Sunday.

The launch will take place in the presence of Minister of State for Coal and Mines Satish Chandra Dubey.

Critical minerals have become increasingly important for economic growth as well as for the transition to clean energy and advanced technologies.

The demand for minerals such as lithium, graphite, rare earth elements, tungsten, vanadium and titanium has surged globally, while their limited availability and concentration in specific regions continue to pose challenges for supply chains.

To address this, the government amended the Mines and Minerals (Development and Regulation) Act, 1957 in August 2023, identifying 24 minerals as critical and strategic.

The amendment allows the Centre to auction mining leases and composite licences for these minerals, while the revenue generated goes to the respective state governments.

The Ministry of Mines has already completed six rounds of auctions, awarding 46 blocks so far, indicating strong participation from the industry.

Building on this, the seventh tranche will offer 19 mineral blocks across multiple states.

These blocks include a mix of minerals that are essential for sectors such as clean energy, fertilisers, advanced technologies and other strategic industries.

The government has also introduced reforms to make the auction process more efficient and transparent.

Changes in rules have simplified timelines after auctions, including processes related to performance security, upfront payments and issuance of letters of intent.

New provisions, such as allowing insurance surety bonds as an alternative to bank guarantees, have been introduced to make participation easier for bidders.

The auction will be conducted online through a transparent two-stage ascending forward auction process, where the bidder quoting the highest percentage of the value of mineral dispatched will be selected.

/IANS