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Why Modi government canceled auction of 9 strategic mineral blocks
05 Jul 2026

The Indian government has canceled the auction of nine critical and strategic mineral blocks. The move comes due to a lack of investor interest and qualified bidders.

This setback is a major blow to the government's plans to boost domestic exploration and production of these minerals.

These are essential for energy security, clean-tech manufacturing, and reducing import dependence in India.

Challenges in attracting private investment into riskier mineral assets
Investment hurdles

The cancellation of the auction highlights the difficulties in attracting private investment into riskier mineral assets.

These challenges include technical complexities, high capital costs, and regulatory uncertainties that often deter potential bidders.

The government had also canceled several critical and strategic mineral block auctions in previous rounds, 11 blocks in the sixth round, five in the fifth, 11 in the fourth, three in the third, 14 in the second tranche and 13 blocks during the first tranche.

Two mineral blocks annulled due to no bids
Block specifics

The Mines Ministry announced that two mineral blocks, Majhauli Titanium, Vanadium and Aluminous Laterite Block and RAMB Degana Tungsten, Lithium and Associated Mineral Block, have been annulled due to no bids.

These blocks are located in Madhya Pradesh and Rajasthan.

Seven other mineral blocks were also annulled as there were less than three technically qualified bidders.

These include Nawara-Nawadih Glauconite Block, Tipa Glauconite Block among others in Bihar, Chhattisgarh, and Odisha.

Seventh round of auction launched on March 23
Auction impact

The seventh round of auction was launched via a Notice Inviting Tender (NIT) on March 23. It offered 19 mineral blocks comprising critical and strategic minerals.

The auction was conducted under the Mines and Minerals (Development and Regulation) Act, 1957, and Mineral (Auction) Rules, 2015.

This tranche marked a major expansion in India's critical mineral exploration landscape with blocks being auctioned for the first time in Gujarat, Uttarakhand, and Telangana by the Centre.