Strict deadlines to ensure critical mineral security

India plans to introduce strict timelines and penalties for winners of critical mineral blocks as the government seeks to fast-track the production of elements essential for the country's transition to clean technology.

- Subhash Narayan

NEW DELHI:

The draft Mineral (Auction) Second Amendment Rules, 2025 includes provisions to levy penalties as a percentage of the performance guarantee—paid by successful bidders to the government—for delaying the exploration activity beyond four months after getting the contract.

The aim is to accelerate production from mineral blocks to fully meet the domestic demand, especially for critical and heavy earth elements such as lithium, nickel, cobalt, silicon, copper, which are essential for solar panels, wind turbines, electric vehicles and energy storage systems.