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Cabinet approved Royalty Rates for Mining of 12 Strategic Minerals

Utkarsh Classes Last Updated 01-03-2024
Cabinet approved Royalty Rates for Mining of 12 Strategic Minerals Government Scheme 4 min read

The Union Cabinet chaired by Prime Minister approved rate of royalty in respect of 12 critical and strategic minerals, viz Beryllium, Cadmium, Cobalt, Gallium, Indium, Rhenium, Selenium, Tantalum, Tellurium, Titanium, Tungsten and Vanadium. 

  • The royalty rates are approved under Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 ('MMDR Act').

Approval of Minerals

  • The Union Cabinet has approved the specification of royalty rates for 12 minerals. This will allow the Central Government to auction blocks of these minerals for the first time in India. 
  • When bidding for the blocks, the royalty rate on the minerals is a key financial factor to consider. 
  • The Ministry of Mines has developed a method to calculate the Average Sale Price (ASP) of these minerals to determine bidding parameters.
  • The MMDR Act's Second Schedule outlines royalty rates for different minerals. However, if the royalty rate for these 12 minerals is not specified, their default royalty rate would be 12% of the ASP. 
  • This rate is considerably high compared to other critical and strategic minerals, and it is not comparable with other mineral-producing countries.

Use of critical minerals

  • Critical minerals such as Cadmium, Cobalt, Gallium, Indium, Selenium, and Vanadium are essential components used in batteries, semiconductors, solar panels, and other electronic devices. 
  • These minerals have gained significant importance in India's commitment to energy transition and achieving net-zero emissions by 2070. 
  • Additionally, minerals like Beryllium, Titanium, Tungsten, and Tantalum are used  in defence equipment, emerging technologies, and electronics.


  • Indigenous mining has the potential to reduce imports and promote the establishment of related industries and infrastructure projects. Additionally, this proposal is expected to increase employment opportunities in the mining sector. 
  • Recently, the Geological Survey of India (GSI) and Mineral Exploration & Consultancy Ltd. (MECL) submitted an exploration report of 13 blocks containing one or more critical minerals such as Cobalt, Titanium, Gallium, Vanadium, and Tungsten. 
  • Furthermore, these agencies are currently conducting exploration for these critical and strategic minerals within the country.
  • Critical minerals have become essential for economic development and national security in India.

Other minerals 

  • The first tranche of the auction of critical and strategic mineral blocks was launched by the Central Government in November 2023. 
  • Minerals such as Lithium, REE, Nickel, Platinum Group of Elements, Potash, Phosphorite, Graphite, Glauconite, Molybdenum, etc. are being auctioned, which has received a positive response from the industry. In the first tranche, a total of 20 mineral blocks are up for auction.The last date of submission of bids (Bid Due Date) for the first tranche of auction was February 26, 2024


Answer: 12 minerals

Answer: Mines and Minerals (Development and Regulation) Act, 1957
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