India’s mineral auction regime has emerged as a key mechanism for the transparent and market-driven allocation of natural resources, supporting both resource security and industrial growth. Since the transition to competitive auctions, the country has steadily expanded the number and diversity of mineral blocks offered, covering minerals such as iron ore and limestone as well as strategically important critical minerals. Progress has been driven by policy reforms, regulatory clarity and increasing private sector participation.
Progress under mineral auctions
Coal mining
Since the launch of commercial coal mining in 2020, India has adopted a transparent two-stage online bidding process designed to encourage competitive participation from both private and public sector players, improve efficiency and boost domestic coal production.
As of December 2025, a total of 136 coal mines have been successfully auctioned under 13 rounds of the commercial coal mining auction process. The cumulative peak rated capacity (PRC) of the auctioned coal block stands at 325.04 million tonnes per annum (mtpa). These mines are spread across seven coal-bearing states – Jharkhand, Chhattisgarh, Odisha, Assam, Arunachal Pradesh, Madhya Pradesh, Maharashtra and West Bengal.
Further, the 14th round of auctions witnessed 49 bids against 24 coal blocks. In total, 49 bids were submitted for these 24 blocks. eleven companies participated in the auction process, including five new entrants bidding for the first time under the commercial coal mining regime, indicating growing confidence in the commercial coal block auction framework. The bids will be assessed by a multidisciplinary technical evaluation committee, and technically qualified bidders will participate in the upcoming e-auction. The ongoing response to commercial coal block tenders highlights the coal sector’s essential role in fostering industrial development, enhancing energy security and advancing India’s progression towards becoming the world’s third largest economy.
In a recent move, Coal India Limited (CIL) has permitted coal consumers located in neighbouring countries including Bangladesh, Bhutan and Nepal to directly participate in its single-window mode-agnostic (SWMA) e-auctions, with effect from January 1, 2026. The move marks the first instance of foreign buyers being allowed to bid directly in CIL’s e-auction framework. The decision follows approval by CIL’s board, which has revised the operational mechanism of the SWMA scheme to enable participation by overseas coal consumers seeking to import coal from India. Earlier, access to CIL’s coal for cross-border consumers was limited to domestic coal traders, who could buy and sell coal without end-use restrictions. The payment process will be governed by the Foreign Exchange Management Act.
Non-coal minerals
During 2025-26 (up to May 2025), a total of 56 mineral blocks were successfully auctioned across multiple states, including Madhya Pradesh, Chhattisgarh, Gujarat, Assam, Andhra Pradesh, Rajasthan, Goa, Odisha, and Uttar Pradesh. These auctions covered a range of key minerals critical to industrial and infrastructure development, notably limestone, bauxite, iron ore and manganese.
Limestone emerged as the most prominent mineral in the auction portfolio, accounting for more than 30 per cent of the total blocks awarded during the period. Iron ore ranked as the second most auctioned mineral, representing over 23 per cent of the total. Collectively, limestone and iron ore constituted more than half of all mineral blocks auctioned.
The dominance of these two minerals reflects sustained demand driven by ongoing construction activity, industrial expansion and long-term economic growth. It is also important to note that the combined share of limestone and iron ore would be even higher if composite mineral blocks containing multiple minerals were included in the calculation.
Critical minerals
As of May 2025, the Ministry of Mines has successfully auctioned a total of 34 critical mineral blocks. Critical minerals like copper, lithium, nickel, cobalt and rare earth elements (REEs) are essential raw materials to fuel the growth of rapidly growing clean energy technologies.
India Infrastructure Research tracked auctions of seven critical mineral blocks across lithium, nickel and cobalt till date. These include two lithium blocks, four nickel blocks and one cobalt block. Two blocks have reached the “Preferred Bidder Declared” stage. These include the Katghora Lithium and REE Block in Korba, Chhattisgarh, awarded to Maiki South Mining Private Limited, and the Gollarahatti–Mallenahalli Nickel-Chromium and PGE Block in Karnataka, awarded to Vedanta Limited. Two additional blocks have been fully awarded to successful bidders: the Genjana Nickel, Chromium and PGE Block in Gaya, Bihar, and the Sanyasikoppa Cobalt, Manganese and Iron Block in Karnataka, both won by Vedanta Limited. However, the Salal-Haimna Lithium, Titanium and Bauxite Block in Reasi, Jammu & Kashmir, was annulled/cancelled due to lack of bids. Three other blocks – the Kundol Nickel and Chromium Block in Gujarat, the Dudhiasol East Nickel and Copper Block in Odisha, and one more nickel-related block – show limited or no award progress, indicating slower movement in the auction pipeline.
Despite India making steady progress in securing critical mineral assets, particularly in lithium and nickel, uneven bidder participation and occasional cancellations continue to affect the pace of resource development.
Measures to incentivise mineral block auctions
The Ministry of Mines has notified amendments to the Mineral (Auction) Rules, 2015 to speed up the operationalisation of auctioned mineral blocks by introducing defined intermediary timelines between the issuance of the letter of intent (LoI) and execution of mining leases. The revised framework seeks to minimise delays in mine development through milestone-based deadlines and provisions for corrective action where progress lags. For mining leases, key timelines include approval of the mining plan within six months, obtaining environmental clearance within 18 months and execution of the lease within 12 months. For composite licences, additional requirements include execution of the licence within 12 months and completion of G2-level prospecting within 36 months. The amendments also require submission of performance security within 45 days of the LoI for both newly auctioned and previously awarded blocks.
Separately, the ministry has released the draft Mineral (Auction) Second Amendment Rules, 2026, proposing partial execution of mining and composite leases to accelerate production. Under this approach, states may allow lease execution for the non-forest portion of a block while clearances for the forest area are pending, enabling early mining in operationally ready zones. The draft outlines conditions for excluding forest land, proposes phased execution of mine development and production agreements, maintains upfront payment obligations, and suggests a unified digital mining portal to streamline auctions, automate LoI issuance and shorten the timeline to lease execution.
Blocks in the pipeline for auction
The Government of India is pursuing an accelerated expansion of critical mineral block auctions through 2031 to strengthen domestic supply chains and reduce reliance on imports of strategic resources such as lithium, copper, nickel, cobalt and REEs. This initiative is being implemented under the National Critical Mineral Mission, supported by an outlay of Rs 343 billion, with a comprehensive focus on scaling up exploration, mining, processing and recycling across the critical minerals value chain. The programme is designed to enhance long-term resource security, support clean energy and advanced manufacturing, and attract private and global investment into India’s mining sector.
At the state level, Odisha has outlined a structured auction pipeline covering 49 mineral blocks, comprising 35 major mineral blocks and 14 critical mineral blocks. The state plans a phased roll-out, targeting six critical mineral block auctions in 2025-26, followed by eight additional auctions in 2026-27. Meanwhile, Rajasthan continues to advance its mineral allocation programme. The state has already offered several major mineral blocks and is preparing to launch e-auctions for approximately 230 minor mineral blocks over the coming months. These auctions are expected to improve mineral availability for construction and industry, strengthen state revenues, and promote greater private sector participation. Overall, coordinated efforts at both the central and state levels signal a sustained policy push to expand India’s mineral base and reinforce long-term supply security.
The way ahead
India is accelerating exploration activities and encouraging greater private sector participation in the minerals segment to strengthen long-term resource security. While progress has been consistent, it remains uneven across minerals and states, reflecting variations in geological readiness, investor interest and project viability. Going forward, the pace of mineral block auctions is expected to accelerate as the country expands its exploration pipeline and improves the availability of geological data. Rising domestic demand driven by the rapid growth of electric vehicles, renewable energy deployment, energy storage systems and advanced manufacturing is likely to further reinforce the strategic importance of critical minerals. Continued policy support, improved exploration quality, faster clearances, and stronger value chain development in processing and recycling will be essential to sustain the momentum.
