India conducted its largest-ever round of mineral block auctions in 2025, with 141 blocks successfully auctioned across various states under the Mines and Minerals (Development and Regulation) Amendment Act, 2025 (MMDR Amendment). This represents a significant acceleration in the government's strategy to monetise mineral wealth and reduce import dependence for critical minerals.
Rajasthan emerged as the state with the second-highest number of auctioned blocks at 22, reflecting the state's rich geological endowment. Key minerals auctioned in Rajasthan include phosphate, lignite, gypsum, limestone, and copper ore. Rajasthan's mineral revenue has historically contributed significantly to state finances, and this round is expected to further boost receipts.
The MMDR Amendment 2025 introduced several reforms including: streamlined clearance timelines, mandatory competitive auctions replacing discretionary allotments, enhanced transparency through the National Mineral Exploration Trust (NMET), and revised revenue-sharing mechanisms favouring state governments and local communities.
The government's broader mineral strategy targets increasing mineral revenue contribution to GDP from the current 3.4% to 5% by FY30. India is also prioritising critical minerals — lithium, cobalt, nickel, graphite — essential for electric vehicles and battery storage, reducing dependence on imports from China and other countries.
The auction success is seen as critical for the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries and India's broader electric vehicle ecosystem. Rajasthan's phosphate reserves are also strategically important for domestic fertiliser production, reducing the import bill.