Consider the following statements:

India has joined the Minerals Security Partnership as a member.

India is a resource-rich country in all the 30 critical minerals that it has identified.

The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals.

Which of the statements given above are correct? (UPSC Prelims 2025)

Question

The correct answer is [C] I and III only. Critical minerals are essential for modern technologies, including clean energy, defense, and telecommunications, and India has recently overhauled its policy framework to secure their supply.

Statement I (Correct): India officially joined the Minerals Security Partnership (MSP) in June 2023. Led by the United States, this 14-member collaboration (including the EU) aims to accelerate the development of diverse and sustainable critical energy mineral supply chains.
Statement II (Incorrect): While India has identified a list of 30 critical minerals (such as Lithium, Cobalt, Nickel, and Graphite), it is not resource-rich in all of them. In fact, India is highly dependent on imports for several key minerals like Lithium and Cobalt, which are vital for electric vehicle batteries. The identification of these minerals was a strategic move to address supply chain vulnerabilities, not a claim of domestic abundance.
Statement III (Correct): The Mines and Minerals (Development and Regulation) Amendment Act, 2023, introduced significant changes. It empowered the Central Government to exclusively auction mining leases and composite licenses for 24 critical and strategic minerals. This was done to fast-track the auction process for minerals like Lithium, Beryllium, and Niobium, which were previously reserved for government entities or difficult for private players to access.

The 2023 amendment also removed six minerals (including Lithium and Titanium) from the list of \"atomic minerals,\" thereby allowing the private sector to mine them for the first time in India\'s history.

GKToday Admin · Accepted Answer

I and III only The correct answer is [C] I and III only. Critical minerals are essential for modern technologies, including clean energy, defense, and telecommunications, and India has recently overhauled its policy framework to secure their supply.

Statement I (Correct): India officially joined the Minerals Security Partnership (MSP) in June 2023. Led by the United States, this 14-member collaboration (including the EU) aims to accelerate the development of diverse and sustainable critical energy mineral supply chains.
Statement II (Incorrect): While India has identified a list of 30 critical minerals (such as Lithium, Cobalt, Nickel, and Graphite), it is not resource-rich in all of them. In fact, India is highly dependent on imports for several key minerals like Lithium and Cobalt, which are vital for electric vehicle batteries. The identification of these minerals was a strategic move to address supply chain vulnerabilities, not a claim of domestic abundance.
Statement III (Correct): The Mines and Minerals (Development and Regulation) Amendment Act, 2023, introduced significant changes. It empowered the Central Government to exclusively auction mining leases and composite licenses for 24 critical and strategic minerals. This was done to fast-track the auction process for minerals like Lithium, Beryllium, and Niobium, which were previously reserved for government entities or difficult for private players to access.

The 2023 amendment also removed six minerals (including Lithium and Titanium) from the list of \"atomic minerals,\" thereby allowing the private sector to mine them for the first time in India\'s history.

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