The sixth tranche of auction for critical and strategic minerals would be launched on Tuesday (September 16, 2025), the Ministry of Mines informed on Monday (September 15, 2025) evening. The latest round would feature 4 mineral blocks where full-fledged mining operations can be undertaken, alongside 19 blocks with a license-cum-mining lease would be granted to prospect the mines and thereafter commence mining. Stationed across “multiple States”, the Ministry informed the mines house several minerals including rare-earths, tungsten, lithium, cobalt, gallium, potash and gallium, among others. 

Striving to increase the availability of critical and strategic minerals in the country, the government amended the Mines and Minerals (Development and Regulation) Amendment Act in 2023. It introduced an auction-based regime to provision exploratory licenses for 29 critical and deep-seated minerals, including lithium, copper, silver, diamond and gold by involving the private sector. The regime for the first time granted exploratory licences for access to mines, with the objective of delineating blocks bearing mining prospects, which could be auctioned later at a premium. The (erstwhile) licensees receive a revenue share from the premium for fifty years.  

Thirty-four blocks have been auctioned till date spanning across five tranches of auctions, encompassing 55 critical and strategic mineral blocks, and across multiple States. The entire revenue generated from the auction accrue to the respective State governments.  

Exploration of critical minerals and rare earths have emerged as a policy imperative for New Delhi in light of the global headwinds triggered by U.S. President Donald Trump’s tariff regime and China’s retaliation blocking export of critical minerals. The Paris-headquartered International Energy Association (IEA) had assessed in their Global Critical Minerals Outlook 2025, that the tariff-induced uncertainty carved a “challenging environment for investors, potentially deterring some critical mineral supply projects, including for minerals like copper and lithium which medium-term supply deficits”.  

IEA had also made a note of India possessing “major untapped resource potential”. Imperative to recall, the Union Cabinet September 3 had approved a ₹1,500 crore incentive scheme to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources.  

Other than commencement of the next tranche, the Ministry would also announce the successful bidders of the first tranche of auctions for exploratory license. Launched in March this year, the auction of 7 deep-seated and critical mineral blocks, of the total 13 exploration blocks put to auction, would also conclude on Tuesday. The mines span across six States, namely, Andhra Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra and Rajasthan. 

In a statement issued on Thursday (September 11, 2025), the Ministry of Mines enumerated that the reduced GST rates recommended at the 56th meeting of the council would have a positive impact on the housing industry and small-scale enterprises. 

The council had recommended reducing the GST rate on marble and travertine blocks, granite blocks, sand lime bricks and certain household commodities made of brass, aluminium and copper, among other things, from 12% to 5%. 

Benefit to housing industry  

Particularly referring to the reduction in granite and marble, the statement noted the recommendations made after the 56th meeting of the council to be of particular value to the housing industry citing its wide usage there. For perspective, extraction of granite and marbles take place widely in states as Rajasthan, Gujarat and Karnataka. 

The ministry further stated the reduction of GST on sand lime bricks would help lower the expenditure for constructing low-cost housing, especially in rural areas.

Benefit to households 

Additionally, the ministry suggested the reduction of GST rates on brass kerosene pressure stove, from 12% to 5%, would support rural and low-income families, making the basic cooking necessities cheaper and expanding access. 

Furthermore, making a note of the reduction in household utensils, milk cans and certain articles — made of copper and/or aluminium, among other things, it argued, “MSMEs engaged in production of such utensils will also benefit from higher demand and wider markets for such products.”