The Rajasthan government through the Rajasthan State Mines and Minerals Limited (RSMML) issued a Notice Inviting Tender (NIT) for the auction of the Degana Tungsten-Lithium block in Nagaur district on October 19, 2025. This development is of national significance as the Rewat Hills area in Degana contains an estimated 14 million tonnes of lithium reserves, representing one of the largest known lithium deposits in India.
Lithium is a critical mineral essential for manufacturing lithium-ion batteries used in electric vehicles (EVs), grid-scale energy storage, and portable electronics. India's dependence on lithium imports — primarily from China — has been a strategic vulnerability. The Degana deposit, if commercially developed, has the potential to significantly reduce this dependence and position India as a key player in the global critical minerals supply chain.
The tungsten reserves at Degana are also strategically important. Tungsten is classified as a critical mineral by the Indian government and is used in defence applications, cutting tools, electronic components, and filaments. The Degana area has historically been known for tungsten mining, and the current block combines both tungsten and lithium extraction potential.
The NIT issuance follows the Union Government's critical minerals policy framework which prioritizes domestic exploration and production of the 30 critical minerals identified in India's Critical Mineral List (2023). China currently controls approximately 60% of global lithium processing and an even higher proportion of tungsten production, making India's domestic development of these resources a geopolitical and economic priority.
RSMML is the nodal agency for mineral development in Rajasthan. The auction process will follow the Mines and Minerals (Development and Regulation) Act, 1957 as amended, with provisions for composite licence and mining lease. The successful bidder will be required to invest in exploration infrastructure and meet the conditions of the Environmental Clearance process.