The government has formed a commission to recommend legislative steps to enable commercially viable recovery of key minerals occurring in small quantities. Critical mineral blocks such as lithium are essential for the manufacture of electric vehicles.

According to an official memorandum issued by the mines ministry, a seven-member panel chaired by NITI Aayog member V K Saraswat will recommend legislative measures to ensure optimal and scientific mining of deep-seated mineral deposits such as copper, gold, and diamond, among others, which are formed in the form of veins and can generally only be extracted through underground mining.

According to the memorandum, the group would also develop a strategy to raise awareness of the impact of mining reforms across states.

Critical mineral blocks such as lithium are essential for the manufacture of electric vehicles. Last year, the Geological Survey of India (GSI) identified 5.9 million tonnes of inferred lithium deposits in Jammu and Kashmir’s Salal-Haimana area.

The government has cancelled the auction for 13 of the 20 blocks put up for sale in the first tranche of key minerals due to a lackluster response.

Of the 20 blocks on offer, 56 physical bids and 56 online offers were received for 18 of them. Seven of the 11 cancelled blocks have been notified for auction in the third round. The second round of bidding, consisting of six blocks, was finished on schedule.