India Auctions First Potash Block To Strengthen Food Security, Mining Sector

In May, India auctioned its first-ever potash block last month, with an aim to reduce country’s dependency on imported agricultural fertilisers and ensuring national food security. This initiate shows the potential of India's vast mineral resources, which plays an important role in progressing nation. Over the past decade, unprecedented reforms have been introduced to boost the mining sector, focusing on transparency, efficiency, and ambition.

The first step has been taken to eliminate outdated policies that has restricted private enterprise. More than 500 mineral blocks have been auctioned, with 119 blocks auctioned just last year since the introduction of the auction regime.

The amendments to the Mines and Minerals Development and Regulation Act (MMDRA) between 2015 and 2023 have created a competitive and dynamic mining industry, with more changes planned to secure critical minerals for national, energy, and food security. This process has been strengthened after the collaboration between the private sector and state agencies, where private sector is playing crucial role in driving reforms. Measures like uniform 50-year leases, removing renewal bottlenecks, simplifying clearance transfers, and introducing an exploration license regime have created opportunities for MSMEs and start-ups.

Ushering in predictability
The unprecedented financial thrust through the National Mineral Exploration Trust, democratic access to more than 12,000 geological reports on the National Geoscience Data Repository, drone surveys, Mining Tenement System, and faceless return filings, all have brought predictability and investor confidence to the sector.

With the launch of the National Critical Mineral Mission (NCMM), India is positioning itself to compete in the global race for critical minerals. As the demand for essential minerals like lithium, cobalt, nickel, and rare earth elements grows, India is working to build a circular economy that will support key industries and drive the country's economic growth.

India’s entry into offshore mineral mining has also positioned the country as a key player in the global resource chain. With lithium mines in Argentina and KABIL’s worldwide asset pursuits, India is expanding its resource base to strengthen its mission.

Strengthening Cooperation Between Centre and States
A major milestone in the past 11 years has been the strengthening of cooperative federalism in the mining sector. Through reforms, Centre-State collaboration has deepened, with states earning ₹4 lakh crore through auction premiums and royalties. Regular dialogues, mining minister conclaves, and initiatives like the State Mining Index and State Mineral Exploration Trust have further improved the partnership. The successful implementation of the District Mineral Foundation (DMF) Trusts, an initiative by Prime Minister Narendra Modi, has also heavily relied on this cooperation.

Expediting Operationalisation and Local Ecosystem Development
The government is working on a mission mode to speed up the process of making mines, reducing delays at every stage from mining leases to approvals. The Ministry of Mines is also ready to support to industry partners throughout the process.

A critical priority is the development of a strong local ecosystem for technology advancement and research in mining. Centres of Excellence are being established to focus on critical minerals and recycling, and for the first time in modern mining history, start-ups have been funded to ensure R&D in exploration and mineral processing.

As India has now become the world’s fourth-largest economy and now aims to reach in third place, a modern and sustainable mining ecosystem will fuel the industries of the future, securing India's position on the global economic map.