Union Minister Shri G. Kishan Reddy Launched 2nd Tranche of Exploration Licence Blocks

1. At a Glance

2nd Tranche of Exploration Licence (EL) Blocks launched on 12 February 2026 by Union Minister of Coal & Mines Shri G. Kishan Reddy at CSOI, New Delhi — comprises 11 critical & deep-seated mineral blocks across 8 States [S1][S2].
EL is a new mineral concession introduced by the MMDR Amendment Act, 2023, allowing private players to undertake reconnaissance + prospecting (G4–G3 stages) of critical/deep-seated minerals via auction [S3].
Strategically targets import-substitution in critical minerals (Li, Co, Ni, REE, PGE, etc.) essential for EV, clean-energy, defence & semiconductor value chains — anchor for Viksit Bharat 2047 mineral self-reliance [S1].

2. Why in the News

12 Feb 2026: 2nd Tranche of EL auction launched, offering 11 blocks of critical & deep-seated minerals across 8 States; pitched as part of "structured, transparent, technology-driven" exploration framework [S1][S2].
Follows the maiden EL auction launched in Goa (1st tranche, mid-2024) — first-ever in India's mineral sector [S4].

3. Background & Evolution

MMDR Act, 1957 — parent legislation governing mineral concessions in India [S3].
2015 Amendment — introduced auction-only allocation of mineral concessions [S3].
MMDR Amendment Act, 2023 (w.e.f. 17 August 2023) — (i) inserted Seventh Schedule listing 29 deep-seated minerals eligible for EL; (ii) empowered Centre to exclusively auction the 24 critical & strategic minerals in Part D of First Schedule; (iii) created the Exploration Licence concession [S3].
June 2024: India's first-ever EL auction launched in Goa (1st tranche) alongside an AI-Driven Mineral Targeting Hackathon [S4].
12 Feb 2026: 2nd Tranche launched [S1].
Parallel track: 7 tranches of Critical & Strategic Mineral Block auctions (ML/CL) since Nov 2023 [S5].

4. Core Static Facts

Nodal Ministry: Ministry of Mines (Union Minister: Shri G. Kishan Reddy, also holds Coal) [S1].
Statutory base: Section 10A & Seventh Schedule of MMDR Act, 1957 (as amended 2023) [S3].
Eligible minerals under EL: 29 deep-seated/critical minerals (Seventh Schedule) incl. gold, silver, copper, lead, zinc, diamond, cobalt, nickel, PGE, REE, molybdenum, lithium, tin, tungsten, etc. [S3].
EL Tenure: 5 years (extendable by 2 yrs); covers G4 → G3 exploration stages [S3].
EL Holder Reward: entitled to a share in auction premium when the explored area is later auctioned as a Mining Lease [S3].
2nd Tranche scope: 11 blocks, 8 States [S1].
Auction platform: MSTC e-auction portal; technical body — GSI / NMET (National Mineral Exploration Trust) [S5].
Royalty rates for 12 critical minerals (Be, Cd, Co, Ga, In, Re, Se, Ta, Te, Ti, W, V) approved by Cabinet — Oct 2023 [S6].

5. Multi-Dimensional Analysis

Economic - Reduces forex outgo on imported critical minerals (India is 100% import-dependent for Li, Co, Ni, Nb, Be, Ta) [S5]. - De-risks private investment by socialising exploration risk through EL framework — junior exploration companies enter the value chain [S3].

Strategic / Geopolitical - Aligns with Critical Minerals List (2023, 30 minerals) of MoM and KABIL overseas acquisition strategy [S5]. - Counters Chinese dominance in REE & battery-mineral supply chains; secures inputs for EV (FAME), Solar (PLI), Semiconductor Mission [S5].

Legal / Federal - EL granted by State Government but blocks for the 24 listed critical minerals are auctioned by the Centre (Section 10(B)(4) post-2023) — partial recentralisation [S3]. - Royalty accrues to State; auction premium shared with EL holder [S3].

Scientific / Technological - Embedded AI-driven Mineral Targeting Hackathon (Goa, 2024) — use of AI/ML on GSI geo-data [S4]. - Encourages junior exploration firms modelled on Australia/Canada systems [S3].

Environmental - Deep-seated mineral mining raises concerns on forest diversion, tribal displacement (Fifth Schedule areas); requires FC Act, 1980 & PESA, 1996 compliance.

6. Recent Developments (last 12-18 months)

June 2024 — 1st EL auction launched at Goa (maiden EL tranche + AI Hackathon) [S4].
2024 — Tranche IV of Critical Mineral block auctions concluded; first tungsten & cobalt blocks auctioned; NE India entered mineral auction map [S5].
2025 — Tranche V auctioned 10 blocks incl. first 2 potash blocks; 6th & 7th tranches launched subsequently [S5].
12 Feb 2026 — 2nd Tranche of EL launched: 11 blocks / 8 States [S1].

7. Prelims Hooks

Exploration Licence introduced via MMDR Amendment Act, 2023 (effective 17 Aug 2023) [S3].
EL covers 29 minerals under Seventh Schedule of MMDR Act [S3].
Centre exclusively auctions 24 critical & strategic minerals under Part D, First Schedule [S3].
India's first EL auction launched in Goa (2024) [S4].
2nd Tranche launched on 12 Feb 2026 by G. Kishan Reddy — 11 blocks, 8 States [S1].
Nodal Ministry: Ministry of Mines (not MoEFCC / Coal Ministry) [S1].
NMET (National Mineral Exploration Trust) funds exploration; GSI is the principal exploration agency [S5].
Cabinet approved royalty for 12 critical minerals (Be, Cd, Co, Ga, In, Re, Se, Ta, Te, Ti, W, V) — Oct 2023 [S6].
E-auction conducted on MSTC portal [S5].
EL holder receives a share of auction premium of the eventual ML — incentive mechanism [S3].
Parallel statute for offshore: Offshore Areas Mineral (Development & Regulation) Amendment Act, 2023 [S3].

8. Mains Relevance

GS-III: Indian Economy — Mineral resources, infrastructure; Science & Tech (clean energy supply chains); Security (strategic minerals).
GS-II: Government policies & interventions; Centre-State relations on mineral concessions.
Possible question stems:
"The Exploration Licence regime introduced by the MMDR Amendment Act, 2023 is a structural reform towards India's critical mineral security. Discuss."
"Examine the federal implications of the Centre's exclusive power to auction critical and strategic mineral blocks."
"Critical minerals are the new oil. Evaluate India's institutional and policy preparedness for securing their supply chains."

9. Related Topics to Study Next

MMDR Amendment Act, 2023 — parent reform.
Critical Minerals List (30 minerals, 2023) — defines scope.
KABIL (Khanij Bidesh India Ltd.) — overseas mineral acquisitions.
National Mineral Policy, 2019 — overarching framework.
NMET & GSI — exploration institutions.
Offshore Areas Mineral (DR) Amendment Act, 2023 — parallel offshore regime.
PESA 1996 & FRA 2006 — tribal/forest interface with mining.
PLI Schemes (ACC battery, solar, semiconductors) — demand-side pull for critical minerals.

10. Common Errors / Trap Areas

EL ≠ Mining Lease ≠ Composite Licence: EL only authorises reconnaissance + prospecting, not mining.
Confusion between Seventh Schedule (29 deep-seated minerals for EL) and Part D of First Schedule (24 critical minerals auctioned by Centre) — overlapping but distinct lists.
EL is granted by State, but the auction is conducted by the Centre for listed minerals — frequently mis-stated.
Don't confuse with Coal block auctions (separate regime under CMSP Act, 2015) — Kishan Reddy holds both portfolios.
The 2nd tranche pertains to EL blocks (11), not the parallel Critical Mineral ML/CL tranches (which had reached the 7th tranche by 2026).

11. Sources

[S1] Union Minister Shri G. Kishan Reddy Launched 2nd Tranche of Exploration Licence Blocks — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2227094 — (tier 1)
[S2] Ministry of Mines to Launch Second Tranche of Exploration Licence Auctions — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2226365 — (tier 1)
[S3] Parliament Passes Mines and Minerals (Development & Regulation) Amendment Bill, 2023 — https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1945102 — (tier 1)
[S4] Mines Ministry Set to Launch First-Ever Exploration Licence (EL) Auction / India's First EL Auction and AI-Driven Mineral Targeting Hackathon Launched in Goa — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2110761 ; https://www.pib.gov.in/PressReleasePage.aspx?PRID=2111246 — (tier 1)
[S5] Exploration and Processing of Critical Minerals / Auction for Critical Mineral Blocks — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2042601 ; https://www.pib.gov.in/PressReleasePage.aspx?PRID=2039605 — (tier 1)
[S6] Cabinet approves royalty rates for mining of 12 critical and strategic minerals — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2010126 — (tier 1)