Increase in Chhattisgarh Mineral Revenue | 21 Mar 2025

Why in News? 

Chhattisgarh's efficient mineral resource extraction has propelled an unprecedented 30-fold increase in the state's mineral revenue since its formation, reaching Rs 13,000 crore in 2023-24.  

 Key Points 

  • Successful E-Auctions of Mineral Blocks: 
    • Chhattisgarh has conducted e-auctions for 44 mineral blocks, ensuring transparency and efficiency in resource allocation. 
    • India’s first lithium block auction was conducted in Chhattisgarh, with the Katghora lithium block in Korba district allocated to South Maiki Mining Company at a 76% premium. 
    • Further lithium exploration is underway in Sukma and Korba districts, with officials reporting promising reserves. 
  • National Critical Minerals Mission: 
    • Recognizing the importance of critical minerals, the Government of India launched the National Critical Minerals Mission in January 2025. 
    • In alignment with this initiative, Chhattisgarh has prioritized exploration, focusing on 31 out of 56 ongoing projects on critical and deep-seated minerals. 
  • Iron Ore Mining and E-Auction Expansion: 
    • Bailadila region remains a major iron ore mining region, housing one of India’s largest iron ore reserves. 
    • The state is conducting e-auctions for three new iron ore blocks, expected to conclude by March 2025. 
    • The Hahaladdi iron ore block in Kanker district is in the final auction stage. 
  • Chhattisgarh’s Rich Natural Resource Base: 
    • The state is home to 28 types of minerals, including Coal, Iron ore, Limestone, Bauxite, Gold, Nickel, Chromium, Platinum group elements. 

 National Critical Mineral Mission (NCMM) 

  • Objective: The NCMM aims to reduce India's dependence on imports of critical minerals and ensure self-reliance for high-tech industries, clean energy, and national defense.  
    • The mission will cover all stages, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products.   
    • The mission will intensify the exploration of critical minerals within the country and in its offshore areas.  
  • Approach:  The NCMM will adopt a "whole-of-government" approach, working closely with various ministries, Public Sector Undertakings (PSUs), private companies, and research institutions.  
    • A fast-track approval process will be established to expedite mining projects for critical minerals.  
  • Stockpiling Minerals: NCMM provisions to develop stockpiles of critical minerals will ensure that India has sufficient reserves to meet future demands.  
  • International Strategy: Encourages Indian companies to acquire critical mineral assets abroad and build trade ties with resource-rich nations.  
  • Infrastructure: The mission will establish mineral processing parks, promote recycling of critical minerals, and support research in related technologies, including the creation of a Centre of Excellence for Critical Minerals.  
    • Encourages industries to establish processing units within India through financial incentives.  
    • Expands Promoting Innovations in Individuals, Startups And MSMEs (PRISM) initiative to fund startups and Micro, Small and Medium Enterprises (MSME) in the critical minerals sector.