New Delhi, India

The Indian government launched the the first ever auction process for critical minerals in a bid to boost the economy while also paying way towards clean energy.

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The first tranche of ₹ 45,000 crore ($5.36 billion) worth of 20 blocks of critical and strategic minerals has been put up for auction on November 29 for prospective bidders by the Indian Ministry of Mines. 

Union Minister of Coal, Mines, and Parliamentary Affairs, Pralhad Joshi while launching the auction process said, "We have identified a total of 100 blocks for auction. Of these, 20 are being offered in the first tranche and the auction for the others will take place in due course." 

These 20 blocks which have been put under the hammer are located in different parts of the country. 

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The mines ministry termed this "a landmark initiative that will boost our economy, enhance national security, and support our transition to a clean energy future." 

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The blocks are located in the Indian states of Uttar Pradesh, Gujarat, Jharkhand, Bihar, Odisha, Tamil Nadu, Chhattisgarh, and in the Union Territory of Jammu and Kashmir.

As per reports, composite licences will be issued for 16 of them and mining licences will be provided for the remaining four. 

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Composite licences are usually provided for those areas where preliminary exploration has already been conducted by the government, however, there is still a need for exploration. Meanwhile, the mining licenses are for those areas where there is a verified minerals reserve. 

"The future global economy will be underpinned by technologies that depend on minerals such as lithium, graphite, cobalt, titanium and rare earth elements (REE). India has committed to achieve 50 per cent of cumulative electric power installed capacity from non-fossil sources by 2030. Such ambitious plan for energy transition is set to drive the demand for electric cars, wind and solar energy projects and battery storage systems thereby increasing the demand for these critical minerals," the ministry said.

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In February this year, India found a huge 5.9 million tonnes of Lithium deposits in the country's north in Jammu and Kashmir. It was the first time when Lithium-inferred resources (G3) of 5.9 million tonnes were found in the Salal-Haimana area of the Reasi district of Jammu and Kashmir. 

(With inputs from agencies)