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Q6 (IAS/2025) Economy › Economy Current Affairs › Energy and mineral policy Answer Verified

Consider the following statements : I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 critical minerals that it has identified. III. 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?

Result
Your answer:  ·  Correct: C
Explanation

India became the 14th member country in the Minerals Security Partnership (MSP) in June 2023[1], making Statement I correct. The Ministry of Mines released a list of 30 critical minerals in June 2023 based on inter-ministerial consultations and methodology capturing Economic Importance and Supply Risk[2]. However, Statement II is incorrect because these minerals face challenges due to current global natural resource endowments, incumbent global mining and processing industrial base, regulatory barriers, and protectionism[2], indicating India is not resource-rich in all 30 critical minerals. Statement III is correct as Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 on August 2 to attract private sector investment in exploration of critical minerals[3], and the 2023 amendment empowered the Central Government to exclusively auction critical and strategic mineral blocks[4]. Therefore, only statements I and III are correct.

Sources
  1. [1] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/dec/doc20241227477501.pdf
  2. [2] https://mines.gov.in/admin/storage/ckeditor/24_pages__desktop_1752835254.pdf
  3. [3] https://www.thehindu.com/news/national/explained-the-push-to-bring-the-private-sector-into-mineral-exploration/article67168185.ece
  4. [4] https://mines.gov.in/admin/download/685a862b2519d1750763051.pdf
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Q. Consider the following statements : I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich cou…
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 · 10/10

A classic 'Current Affairs applied to Static Syllabus' question. It bridges International Relations (MSP) with Domestic Legislation (MMDR Act). While books cover mineral belts, they fail on the 2023 legislative shift. The key was spotting the logical contradiction between 'Security Partnership' (implies scarcity) and 'Resource Rich in all' (implies abundance).

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Did India join the Minerals Security Partnership (MSP) as a member?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"In June 2023, India became newest partner (14th member"
Why this source?
  • Explicitly states India became the newest partner and identifies it as the 14th member.
  • Directly ties India to MSP membership with a date (June 2023).
Web source
Presence: 5/5
"India became newest partner (14th member country) in MSP, to accelerate the development of diverse and sustainable critical energy minerals supply chains globally"
Why this source?
  • Repeats the assertion that India became the newest MSP partner and labels it the 14th member country.
  • Context describes India agreeing to MSP principles and participating in MSP projects and meetings.
Web source
Presence: 4/5
"the Mineral Security Partnership (MSP), which India became party to this year."
Why this source?
  • News source states India 'became party to' the Mineral Security Partnership, indicating membership.
  • Links MSP membership to India's objective of reducing reliance on other countries for critical minerals.

Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > Foreign Relations > p. 795
Strength: 5/5
“reached out boldly to both Saudi Arabia and the United Arab Emirates with the idea of gaining politically and economically. In the long term, India, fighting the threat from cross-border terrorism, was bound to gain from the Gulf monarchies' growing opposition to Islamist terrorism. India joined the Australia Group, which aims to prevent proliferation of biological and chemical weapons, and will ensure a more secure world. With this, India had become a member of three of the four nuclear export control regimes. Earlier, India joined the Missile Technology Control Regime (MTCR) in 2016 and the Wassenaar Arrangement (WA) in 2017.”
Why relevant

Lists specific multilateral export‑control and security regimes that India joined (Australia Group, MTCR, Wassenaar), showing a pattern of India acceding to international security/technology groupings.

How to extend

A student could use this pattern to check whether India has recently acceded to other security/resource‑related initiatives (like MSP) by comparing dates and announcements of accession.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Important Facts > p. 523
Strength: 4/5
“International Centre for Settlement of Investment Disputes (ICSID) • Ø • Name: IBRD; Established in: 1945; Headquarters: Washington DC; Members: 189; Is India a Member?: Yes • Name: IDA; Established in: 1960; Headquarters: Washington DC; Members: 173; Is India a Member?: Yes • Name: IFC; Established in: 1956; Headquarters: Washington DC; Members: 184; Is India a Member?: Yes • Name: MIGA; Established in: 1988; Headquarters: Washington DC; Members: 181; Is India a Member?: Yes • Name: ICSID; Established in: 1966; Headquarters: Washington DC; Members: 161; Is India a Member?: Yes”
Why relevant

Shows India is routinely a member of many international economic/financial organisations (IBRD, IDA, IFC, MIGA, ICSID), indicating frequent participation in multilateral bodies.

How to extend

Use this general membership tendency as a basis to look up membership lists of newer partnerships (MSP) to see if India appears.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Distribution of Minerals > p. 1
Strength: 4/5
“The mineral wealth of India is largely confined to the igneous and metamorphic rocks of Peninsular India, while the Great Plains of India and the Himalayan region are almost devoid of the metallic minerals. The states which are rich in the metallic and non-metallic minerals are Jharkhand, Chhattisgarh, Odisha, Bihar, West Bengal, Madhya Pradesh, Karnataka, Kerala, Maharashtra, Tamil Nadu, Rajasthan, Gujarat, Uttarakhand, Andhra Pradesh, Tripura, and Assam. The states of Uttar Pradesh, Haryana, Punjab, Himachal Pradesh, Jammu and Kashmir, and Gangetic West Bengal are, however, poor in mineral resources.”
Why relevant

Describes the distribution and significance of India's mineral wealth, implying India is a relevant actor for any international minerals‑security initiative.

How to extend

Combine this fact (India's mineral resources) with a world map or MSP membership list to assess whether India would have motive/standing to join MSP.

NCERT. (2022). Contemporary India II: Textbook in Geography for Class X (Revised ed.). NCERT. > Chapter 5: Print Culture and the Modern World > All living things need minerals > p. 107
Strength: 3/5
“Rat-Hole Mining. Do you know that most of the minerals in India are nationalised and their extraction is possible only after obtaining due permission from the government? But in most of the tribal areas of the north-east India, minerals are owned by individuals or communities. In Meghalaya, there are large deposits of coal, iron ore, limestone and dolomite etc. Coal mining in Jowai and Cherapunjee is done by family member in the form of a long narrow tunnel, known as 'Rat hole' mining. The National Green Tribunal has declared such activities illegal and recommended that these should be stopped forthwith.”
Why relevant

Discusses domestic mineral ownership and contentious mining practices (rat‑hole mining) and legal/regulatory control, highlighting governance issues related to minerals.

How to extend

A student could infer that domestic governance concerns might affect India's willingness or ability to join an international minerals‑security partnership and then check official MSP communications.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Regional Comprehensive Economic Partnership (RCEP) > p. 395
Strength: 3/5
“The fact is India earlier had lower import duties/tariffs, which Modi govt increased in 2014. If India commits to reduce some percentage tariffs from 2014 then still our tariffs will be relatively higher for the RCEP member countries and we could prevent access to our market)• For India, RCEP may not make much difference as it has FTAs with ASEAN, and Comprehensive Economic Partnership Agreements (CEPAs) with Japan & South Korea. India has the option to join the deal in future. But if it will not join the RCEP deal then it will face challenge in market access of these countries.”
Why relevant

Explains that India sometimes chooses not to join regional economic deals (RCEP) for strategic/economic reasons, showing India does not automatically join every multilateral agreement.

How to extend

Use this pattern of selective joining to justify checking authoritative MSP membership sources rather than assuming India is a member.

Statement 2
Has India officially identified 30 critical minerals?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"the Ministry of Mines released a list of 30 critical minerals in June, 2023."
Why this source?
  • Explicitly states the Ministry of Mines released a list of 30 critical minerals.
  • Specifies the release was based on inter-ministerial consultations and a defined methodology, indicating an official identification.
Web source
Presence: 4/5
"India’s List of 30 Critical Minerals Identified"
Why this source?
  • Refers to 'India’s List of 30 Critical Minerals Identified', confirming the existence of an official list.
  • Appears in a government document context (Ministry of Mines), supporting official status.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > 2. Metallic Minerals > p. 5
Strength: 4/5
“Metallic minerals constitute the second most important group of minerals after fossil fuels. These minerals provide a strong base for the development of metallurgical industry, and thereby help the process of industrialisation and urbanisation. India has a substantial reserve of these minerals (Fig. 7.3). India is a producer of about 95 minerals of which 3 are fuel minerals, 3 atomic minerals, 10 metallic, 23 non-metallic minerals and 55 minerals.”
Why relevant

Gives a concrete count of minerals India produces (about 95), providing a scale for what a subset of ‘30’ would mean.

How to extend

A student could compare the claimed 30 to the total ~95 to judge plausibility and then look for official lists naming which subset are deemed 'critical'.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Natural Resources of India > p. 30
Strength: 4/5
“In addition to this, rock salt is obtained from the Mandi area of Himachal Pradesh. The Mandi salt is hard and massive and has to be blasted. India exports small quantities of salt to the neighbouring countries like Bangladesh, Bhutan, Indonesia, Japan, Maldive, Nepal, Singapore, South Korea, and Taiwan. Problems of Mining Industry: India is rich in mineral resources. The mining industry is however, facing a number of problems. Some of the problems have been described briefly in the following: • 1. Ill-Defined Government Policy: There is no well defined government policy about the prospecting, extraction and processing of mineral resources.”
Why relevant

States that there is 'no well defined government policy' about prospecting, extraction and processing of minerals, implying historical uncertainty in official classifications.

How to extend

One could use this to hypothesize that an explicit official 'critical minerals' list would mark a policy shift, so a student should check recent government notifications or policy documents for such a list.

INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 5: Mineral and Energy Resources > MINERAL AND ENERGY RESOURCES > p. 53
Strength: 3/5
“India is endowed with a rich variety of mineral resources due to its varied geological structure. Bulk of the valuable minerals are products of pre-palaezoic age (Refer: Chapter 2 of Class XI, Textbook: "Fundamentals of Physical Geography" and are mainly associated with metamorphic and igneous rocks of the peninsular India. The vast alluvial plain tract of north India is devoid of minerals of economic use. The mineral resources provide the country with the necessary base for industrial development. In this chapter, we shall discuss the availability of various types of mineral and energy resources in the country. A mineral is a natural substance of organic or inorganic origin with definite chemical and physical properties.”
Why relevant

Provides a clear definition of a mineral and emphasizes the chapter's focus on availability and classification of minerals, indicating official textbooks categorize minerals systematically.

How to extend

A student could use standard classifications in official sources as a baseline, then search for an added 'critical' category in recent government or institutional publications.

INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 5: Mineral and Energy Resources > Distribution of Minerals in India > p. 54
Strength: 3/5
“Most of the metallic minerals in India occur in the peninsular plateau region in the old crystalline rocks. Over 97 per cent of coal reserves occur in the valleys of Damodar, Sone, Mahanadi and Godavari. Petroleum reserves are located in the sedimentary basins of Assam, Gujarat and Mumbai High i.e. off-shore region in the Arabian Sea. New reserves have been located in the Krishna-Godavari and Kaveri basins. Most of the major mineral resources occur to the east of a line linking Mangaluru and Kanpur. Minerals are generally concentrated in three broad belts in India. There may be some sporadic occurrences here and there in isolated pockets.”
Why relevant

Describes geographic concentration and belt-based grouping of major minerals, showing how minerals are classified by occurrence and importance.

How to extend

A student might extend this by checking whether a 'critical minerals' list uses similar geographic or strategic criteria, and then map any named critical minerals against these belts.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > 2. Metallic Minerals > p. 6
Strength: 2/5
“The total value of mineral production (excluding atomic & fuel minerals) during 2017–18 has been estimated at 113,541 crores, which shows an increase of about 13% over 2016–17.The value of metallic minerals in 2016–17 at Rs 40,017 increased by 19.03% and that of non metallic minerals at Rs 7414.53 crores during 2016–17 decreased by 2.07%.”
Why relevant

Gives recent aggregate economic values for mineral production, suggesting that economic importance is tracked and could be a basis for labeling certain minerals as 'critical.'

How to extend

A student could look for government criteria (e.g., economic value, strategic use) used to define 'critical' minerals and see if about 30 minerals meet those criteria.

Statement 3
Is India resource‑rich in all 30 critical minerals it has identified?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 4/5
"Based on the inter-ministerial consultations and well-crafted methodology capturing the Economic Importance and Supply Risk, the Ministry of Mines released a list of 30 critical minerals in June, 2023. ... challenges due to current global natural resource endowments, incumbent global mining and processing industrial base, regulatory barriers, and protectionism."
Why this source?
  • Explicitly notes India released a list of 30 critical minerals while also flagging challenges arising from 'current global natural resource endowments', implying uneven domestic endowments.
  • Positions the 30‑mineral list alongside sourcing and value‑chain development, indicating domestic supply gaps to be addressed.
Web source
Presence: 4/5
"into Critical Minerals Partnership Agreements (CMPA) with resource-rich countries. ... 4.4.3 Eliminate a number of Import Duty on Critical Minerals: The government has eliminated import duty on critical minerals, based"
Why this source?
  • Refers to entering Critical Minerals Partnership Agreements with 'resource-rich countries', which implies India does not have all resources domestically.
  • Notes removal/elimination of import duty on critical minerals, indicating reliance on imports for some minerals.
Web source
Presence: 4/5
"Additionally, the State Public Sector Undertakings (PSUs) will be encouraged to actively participate in acquiring mineral assets abroad or make financial investments to support other Central PSUs. 4.2 Acquisition of Critical Mineral Assets abroad 4.2.1 Mapping and Acquisition of Significant Critical Mineral Assets: The Mission will extend support for mapping and detailed exploration of critical mineral assets in resource-rich countries through"
Why this source?
  • Describes a Mission objective for 'Acquisition of Critical Mineral Assets abroad' and support for mapping/exploration in 'resource-rich countries', showing intent to secure supplies externally.
  • Encourages state/PSU participation in acquiring mineral assets abroad, implying domestic resources alone are insufficient.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Distribution of Minerals > p. 1
Strength: 5/5
“The mineral wealth of India is largely confined to the igneous and metamorphic rocks of Peninsular India, while the Great Plains of India and the Himalayan region are almost devoid of the metallic minerals. The states which are rich in the metallic and non-metallic minerals are Jharkhand, Chhattisgarh, Odisha, Bihar, West Bengal, Madhya Pradesh, Karnataka, Kerala, Maharashtra, Tamil Nadu, Rajasthan, Gujarat, Uttarakhand, Andhra Pradesh, Tripura, and Assam. The states of Uttar Pradesh, Haryana, Punjab, Himachal Pradesh, Jammu and Kashmir, and Gangetic West Bengal are, however, poor in mineral resources.”
Why relevant

States that mineral wealth is largely confined to Peninsular India while the Great Plains and Himalaya are almost devoid of metallic minerals — showing uneven spatial distribution.

How to extend

A student could compare a map of the 30 critical minerals' known occurrences with physiographic regions to judge whether all 30 are likely present across India.

NCERT. (2022). Contemporary India II: Textbook in Geography for Class X (Revised ed.). NCERT. > Chapter 5: Print Culture and the Modern World > Dig a little deeper: What is the difference between an open pit mine, a quarry and an underground mine with shafts? > p. 107
Strength: 4/5
“India is fortunate to have fairly rich and varied mineral resources. However, these are unevenly distributed. Broadly speaking, peninsular rocks contain most of the reserves of coal, metallic minerals, mica and many other non-metallic minerals. Sedimentary rocks on the western and eastern flanks of the peninsula, in Gujarat and Assam have most of the petroleum deposits. Rajasthan with the rock systems of the peninsula, has reserves of many non-ferrous minerals. The vast alluvial plains of north India are almost devoid of economic minerals. These variations exist largely because of the differences in the geological structure, processes and time involved in the formation of minerals.”
Why relevant

Explains that peninsular rocks contain most reserves of coal, metallic minerals and many non‑metallic minerals, and that alluvial plains are almost devoid of economic minerals.

How to extend

Use basic geological maps (peninsular vs alluvial areas) to infer which critical minerals (often tied to specific rock types) are more or less likely to occur in India.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > 2. Metallic Minerals > p. 5
Strength: 4/5
“Metallic minerals constitute the second most important group of minerals after fossil fuels. These minerals provide a strong base for the development of metallurgical industry, and thereby help the process of industrialisation and urbanisation. India has a substantial reserve of these minerals (Fig. 7.3). India is a producer of about 95 minerals of which 3 are fuel minerals, 3 atomic minerals, 10 metallic, 23 non-metallic minerals and 55 minerals.”
Why relevant

Gives a numeric scope: India is a producer of about 95 minerals across categories (metallic, non‑metallic, fuel, atomic).

How to extend

Compare the list of 95 produced minerals with the list of 30 critical minerals to estimate overlap and identify which critical minerals might be absent.

INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 5: Mineral and Energy Resources > MINERAL AND ENERGY RESOURCES > p. 53
Strength: 3/5
“India is endowed with a rich variety of mineral resources due to its varied geological structure. Bulk of the valuable minerals are products of pre-palaezoic age (Refer: Chapter 2 of Class XI, Textbook: "Fundamentals of Physical Geography" and are mainly associated with metamorphic and igneous rocks of the peninsular India. The vast alluvial plain tract of north India is devoid of minerals of economic use. The mineral resources provide the country with the necessary base for industrial development. In this chapter, we shall discuss the availability of various types of mineral and energy resources in the country. A mineral is a natural substance of organic or inorganic origin with definite chemical and physical properties.”
Why relevant

States India is endowed with a rich variety of mineral resources tied to varied geological structure — implying presence of many but not necessarily all mineral types.

How to extend

Combine this general rule with a global list of which geological formations host each critical mineral to assess plausibility of all 30 being present.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 2: Physiography > Significance of the Peninsular Plateau > p. 62
Strength: 3/5
“Richly endowed with natural resources, Peninsular India has an important role in the economic development of the country. The importance of Peninsular India is mainly because of the following benefits from its location and rock formations: • (i) The Peninsular region of India is rich in both the metallic and non-metallic minerals. Mineral ores like iron, manganese, copper, bauxite, chromium, mica, gold, silver, zinc, lead, mercury, coal, diamond, precious stones, marble, building materials and decorative stones are found in abundance in this physiographic region. About 98 % of the Gondwana coal deposits of India are also found in the Peninsular region.• (ii) A substantial part of the Peninsular India is covered by black earth (Regur soil).”
Why relevant

Lists specific minerals abundant in Peninsular India (iron, manganese, copper, bauxite, chromium, mica, etc.), giving examples of what India is rich in.

How to extend

Cross‑reference these known abundant minerals against the 30 critical minerals to see which critical ones are already clearly present and which are not mentioned.

Statement 4
Did the Parliament of India amend the Mines and Minerals (Development and Regulation) Act, 1957 in 2023?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"On August 2, Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2023, in a bid to attract private sector investment in the exploration of critical and deep-seated minerals in the country."
Why this source?
  • Explicitly states Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2023.
  • Gives the date of parliamentary passage (August 2, 2023), directly tying the amendment to 2023.
Web source
Presence: 5/5
"In connection to the Mines and Minerals (Development and Regulation) Amendment Act, 2023, the Ministry of Mines has notified 66 Notice Inviting Tenders (NITs) for 48 blocks"
Why this source?
  • Official ministry/PIB document refers to the 'Mines and Minerals (Development and Regulation) Amendment Act, 2023'.
  • Describes actions (notifications/auctions) taken 'in connection to' that Amendment Act, showing it was in force and used in 2023–24 processes.
Web source
Presence: 5/5
"Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) has been amended through the MMDR Amendment Act, 2023 w.e.f. 17.08.2023."
Why this source?
  • Directly states the MMDR Act 'has been amended through the MMDR Amendment Act, 2023'.
  • Provides an effective date (w.e.f. 17.08.2023), confirming the amendment occurred in 2023.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > 14.11 Coal, Coal Mines Act 2015 and MMDR Act 2015 > p. 427
Strength: 4/5
“The State Governments grant the mineral concessions/rights for all the minerals located within the boundary of the State, under provisions of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act 1957) by taking prior permission of Central Government. MMDR Act 1957 applies to all minerals including coal and special provisions have been enacted for coal sector through Coal Mines Act 2015.”
Why relevant

States grant mineral concessions under the MMDR Act 1957 and special provisions (e.g., Coal Mines Act 2015) have been separately enacted, indicating the Act is a living framework that has been adjusted by later legislation.

How to extend

A student could check legislative records (Gazette/Parliament proceedings) for further amendments or related Acts in 2023 to see if MMDR itself was amended that year.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Mines and Minerals (Development & Regulation) Act 1957: > p. 429
Strength: 5/5
“Further, a provision has been made for constitution of special courts by the state governments for fast-track trial of cases related to illegal mining.• Central government has been given powers to intervene where state governments do not pass orders within prescribed timelines. This will eliminate delay.• The Act provides for the creation of District Mineral Foundation (DMF) by the state governments in the districts where mining takes place.”
Why relevant

The snippet notes specific provisions (special courts, central intervention timelines, creation of District Mineral Foundation) showing the Act has been subject to substantive provisions and procedural changes — a pattern of amendment/adjustment.

How to extend

Use this pattern to look up whether any of these provisions were newly inserted or modified in 2023 via amendment notifications or the MMDR Act amendment history.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > National New Mineral Policy 2019 > p. 32
Strength: 3/5
“After the liberalization and globalization, the mining industry has been opened to the private sector. The main Objectives of the New Mineral Policy 2019 are as under: • 1. The policy shall ensure more effective regulation that shall lead to sustainable mining sector development in the future.• 2. Introduction of Right of First Refusal for RP/PL holders.• 3. Public sector mining: It shall encourage and promote the private sector to take up exploration by creating dedicated mineral corridors to boost the private sector mining areas. There is a proposal of granting industry status to mining activity to boost the financing for the private sectors and acquisition of mineral assets in the countries.”
Why relevant

The National Mineral Policy 2019 introduced new objectives and policy changes for mining, suggesting an ongoing policy-legal evolution in the sector after 2019 that could prompt amendments to MMDR.

How to extend

Cross-reference policy changes from 2019 onward with amendment bills or official releases in 2023 to judge if MMDR was amended to implement policy goals.

NCERT. (2022). Contemporary India II: Textbook in Geography for Class X (Revised ed.). NCERT. > Chapter 5: Print Culture and the Modern World > All living things need minerals > p. 107
Strength: 3/5
“Rat-Hole Mining. Do you know that most of the minerals in India are nationalised and their extraction is possible only after obtaining due permission from the government? But in most of the tribal areas of the north-east India, minerals are owned by individuals or communities. In Meghalaya, there are large deposits of coal, iron ore, limestone and dolomite etc. Coal mining in Jowai and Cherapunjee is done by family member in the form of a long narrow tunnel, known as 'Rat hole' mining. The National Green Tribunal has declared such activities illegal and recommended that these should be stopped forthwith.”
Why relevant

Discussion of nationalisation and legal control over mineral extraction, along with NGT rulings (rat-hole mining), shows active regulatory/legal responses to mining issues — a context in which Parliament may enact amendments.

How to extend

A student could examine whether judicial directions or NGT orders around 2022–2023 led to a parliamentary amendment of MMDR in 2023.

Statement 5
Does the 2023 amendment to the Mines and Minerals (Development and Regulation) Act, 1957 empower the Central Government to exclusively auction mining leases and composite licences for specified critical minerals?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"• Empowered Central Government to exclusively auction mineral concessions for critical minerals list in Part-D of First Schedule of the Act."
Why this source?
  • Explicitly states the Act introduced a Part‑D of 24 critical and strategic minerals.
  • Directly says the Central Government was empowered to exclusively auction mineral concessions for the critical minerals listed in Part‑D.
Web source
Presence: 5/5
"Amendment of MMDR Act in 2023 empowered the Central Government to exclusively auction critical and strategic mineral blocks ... Process reforms in the execution of Composite License and Mining Lease"
Why this source?
  • States the MMDR Amendment Act, 2023 empowered the Central Government to exclusively auction critical and strategic mineral blocks.
  • Mentions process reforms related to execution of Composite License and Mining Lease, linking the amendment to those concession types.
Web source
Presence: 4/5
"As per the provisions of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), mineral concessions are auctioned by the State Governments."
Why this source?
  • Provides the prior legal baseline that mineral concessions were auctioned by State Governments.
  • Serves as contextual contrast showing the amendment shifts auctioning authority for specified critical minerals to the Centre.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Mines and Minerals (Development & Regulation) Act 1957: > p. 428
Strength: 5/5
“The salient features of the Act (as per recent amendments) are: The Mining Leases is granted by the respective State Governments through auctions by competitive bidding including electronic auction, thereby bringing in greater transparency and removal of discretion.”
Why relevant

Says mining leases are granted by respective State Governments through auctions by competitive bidding under recent amendments to the MMDR Act — establishes that auctioning of leases is normally a state-level function under the Act.

How to extend

A student could check whether the 2023 amendment altered this allocation by centralising the auction power for particular minerals (i.e., compare pre- and post-2023 wording about which authority grants leases).

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > 14.11 Coal, Coal Mines Act 2015 and MMDR Act 2015 > p. 427
Strength: 4/5
“The State Governments grant the mineral concessions/rights for all the minerals located within the boundary of the State, under provisions of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act 1957) by taking prior permission of Central Government. MMDR Act 1957 applies to all minerals including coal and special provisions have been enacted for coal sector through Coal Mines Act 2015.”
Why relevant

Notes that State Governments grant mineral concessions/rights under the MMDR Act but must take prior permission of the Central Government — indicates an existing central oversight role without full transfer of grant authority.

How to extend

A student might use this to ask whether the 2023 amendment moved beyond 'prior permission' to give exclusive auctioning authority to the Centre for certain minerals (so check amendment text for scope of central powers).

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Mines and Minerals (Development & Regulation) Act 1957: > p. 429
Strength: 4/5
“Further, a provision has been made for constitution of special courts by the state governments for fast-track trial of cases related to illegal mining.• Central government has been given powers to intervene where state governments do not pass orders within prescribed timelines. This will eliminate delay.• The Act provides for the creation of District Mineral Foundation (DMF) by the state governments in the districts where mining takes place.”
Why relevant

States that the Central Government has been given powers to intervene where state governments do not pass orders within prescribed timelines — shows a precedent for central intervention in state mining matters.

How to extend

A student could reasonably infer that similar intervention powers might be expanded by amendment to allow central auctioning in specified cases, and should therefore verify whether the 2023 amendment explicitly creates such a special central power.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > Proposed/Implemented reforms under Aatma Nirbhar Bharat > p. 248
Strength: 3/5
“• Commercial Coal Mining• Removal of distinction between captive and merchant mines. Introduction of a seamless composite exploration-cum-mining-cum production regime• Change in definition of MSMEs by increasing the investment limit and including turnover criteria• Global tenders (foreign companies) disallowed in government procurement tenders up to Rs. 200 crores. This was done as Indian MSMEs and other companies have often faced unfair competition from foreign companies. It will help MSMEs to increase their business and support Make-in-India.• Labour reforms (One labour return, one license and one registration)• Creation of National Land Bank Portal which will map land, spread across various industrial belts and special economic zones.• Government allowed private companies in satellites, launches and space-based services.”
Why relevant

Mentions policy reforms including a 'seamless composite exploration-cum-mining-cum production regime' — signals movement toward unified/composite licensing models in recent reforms.

How to extend

A student could test whether the 2023 amendment implements centralised auctions specifically for 'composite licences' by checking if the amendment defines/allocates authority for composite licences to the Centre.

Pattern takeaway: Legislative Amendments that transfer power from State to Centre are 5-star topics. UPSC focuses on the 'Federal Shift' (State used to auction, now Centre does for critical minerals) rather than just technical mineral details.
How you should have studied
  1. [THE VERDICT]: Manageable. Statement II is a 'Logic Trap'—an extreme claim ('all 30') that contradicts the very purpose of the partnership in Statement I. Source: The Hindu/PIB (Aug 2023).
  2. [THE CONCEPTUAL TRIGGER]: Critical Minerals Mission & Energy Transition (GS-1 Geography + GS-3 Economy).
  3. [THE HORIZONTAL EXPANSION]: Memorize the 'Big 6' India lacks (Lithium, Cobalt, Nickel, Vanadium, Niobium, Germanium); Know KABIL's mandate; Read the 'Offshore Areas Mineral Amendment Act 2023'; Understand 'Part D' of First Schedule (Critical Minerals).
  4. [THE STRATEGIC METACOGNITION]: When India joins a 'Security' group for resources, assume we are deficient. When a new 'List' (30 minerals) is notified, immediately check the governance change: Who auctions now? (Shift from State to Centre).
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 India's membership of international export-control regimes
💡 The insight

Records of India joining groups like the Australia Group, MTCR and Wassenaar illustrate how India becomes a member of security-related multilateral arrangements.

High-yield for UPSC because questions often probe India's strategic alignments and non-proliferation commitments; links foreign policy, defence technology controls and global governance. Mastery enables quick recall of India's multilateral engagements and comparison with new partnerships.

📚 Reading List :
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > Foreign Relations > p. 795
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Important Facts > p. 523
🔗 Anchor: "Did India join the Minerals Security Partnership (MSP) as a member?"
📌 Adjacent topic to master
S1
👉 Mineral ownership and domestic regulation in India
💡 The insight

Knowledge of nationalisation, community ownership and regulatory control over minerals is central to understanding India's internal capacity and policies related to mineral security.

Important for questions on resource governance, tribal rights, environmental law and links between domestic resource policy and international mineral collaborations. Helps connect geography, polity and economic policy perspectives.

📚 Reading List :
  • NCERT. (2022). Contemporary India II: Textbook in Geography for Class X (Revised ed.). NCERT. > Chapter 5: Print Culture and the Modern World > All living things need minerals > p. 107
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Distribution of Minerals > p. 1
🔗 Anchor: "Did India join the Minerals Security Partnership (MSP) as a member?"
📌 Adjacent topic to master
S1
👉 Verifying India's membership in multilateral bodies
💡 The insight

Lists of India’s memberships (for institutions like IMF/World Bank organs) demonstrate the method of confirming whether India has joined a particular international partnership.

A practical UPSC skill: verifying factual claims about memberships and alliances strengthens answers in current affairs and international relations, and reduces factual errors in prelims and mains. It connects to study of international organisations and India's global role.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > India and IMF > p. 521
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Important Facts > p. 523
🔗 Anchor: "Did India join the Minerals Security Partnership (MSP) as a member?"
📌 Adjacent topic to master
S2
👉 Classification of mineral types in India
💡 The insight

India's mineral base is divided into fuel, atomic, metallic and non-metallic categories with numeric breakdowns.

High-yield for UPSC geography and economy questions: helps answer questions on resource accounting, policy priorities and sectoral comparisons. Links to resource management, industrial policy and fiscal/royalty issues. Enables elimination-style answers where knowing category counts or types is decisive.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > 2. Metallic Minerals > p. 5
🔗 Anchor: "Has India officially identified 30 critical minerals?"
📌 Adjacent topic to master
S2
👉 Peninsular India as the core region for mineral deposits
💡 The insight

Most valuable minerals, especially metallics and mica, are concentrated in the peninsular crystalline rock regions.

Important for questions on resource distribution, regional development and industrial location. Connects physical geology with economic geography and infrastructure planning; useful for map-based and distribution-based questions.

📚 Reading List :
  • NCERT. (2022). Contemporary India II: Textbook in Geography for Class X (Revised ed.). NCERT. > Chapter 5: Print Culture and the Modern World > Dig a little deeper: What is the difference between an open pit mine, a quarry and an underground mine with shafts? > p. 107
  • INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 5: Mineral and Energy Resources > Distribution of Minerals in India > p. 54
🔗 Anchor: "Has India officially identified 30 critical minerals?"
📌 Adjacent topic to master
S2
👉 Economic value and production trends of mineral sectors
💡 The insight

Mineral production is quantified in monetary terms and shows year-on-year variations for metallic and non-metallic minerals.

Useful for evaluating the economic significance of mining in GDP, budgetary/resource policy debates and questions on commodity cycles. Helps answer data interpretation and comparison questions about sectoral contributions and trends.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Mineral Belts of India > p. 3
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > 2. Metallic Minerals > p. 6
🔗 Anchor: "Has India officially identified 30 critical minerals?"
📌 Adjacent topic to master
S3
👉 Uneven spatial distribution of mineral resources in India
💡 The insight

Mineral resources are concentrated in the Peninsular region while the alluvial plains and Himalayan region are largely poor in minerals.

High-yield for geography and economy questions because it explains regional industrial development and resource-driven disparities; connects to topics on regional planning, mineral-based industries and transport logistics; enables map‑based and comparative questions on state resource endowments.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Distribution of Minerals > p. 1
  • NCERT. (2022). Contemporary India II: Textbook in Geography for Class X (Revised ed.). NCERT. > Chapter 5: Print Culture and the Modern World > Dig a little deeper: What is the difference between an open pit mine, a quarry and an underground mine with shafts? > p. 107
  • INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 5: Mineral and Energy Resources > MINERAL AND ENERGY RESOURCES > p. 53
🔗 Anchor: "Is India resource‑rich in all 30 critical minerals it has identified?"
🌑 The Hidden Trap

The specific de-notification of Atomic Minerals: Lithium, Beryllium, Niobium, Titanium, Tantalum, and Zirconium were removed from the 'Atomic Minerals' list to allow private sector entry. Expect a question on which minerals are no longer 'Atomic'.

⚡ Elimination Cheat Code

The 'Motive-Reality' Contradiction: If Statement I is true (India joined a *Security* Partnership), it implies insecurity or scarcity. Statement II claims abundance in *all* 30. These are mutually exclusive. If we were rich in all, we would be a supplier (like China), not a seeker of security. Thus, II must be false. Eliminate A, B, and D. Answer is C.

🔗 Mains Connection

Federalism vs National Security (Mains GS-2): The 2023 Amendment centralises power (Centre auctions) citing strategic necessity, effectively diluting State fiscal autonomy over their mineral wealth. This is a classic Centre-State tension point.

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SIMILAR QUESTIONS

IAS · 2008 · Q128 Relevance score: 1.96

Consider the following statements: 1. The Nuclear Suppliers Group has 24 countries as its members. 2. India is a member of the Nuclear Suppliers Group. Which of the statements given above is/are correct?

IAS · 2024 · Q59 Relevance score: 1.81

Consider the following statements : 1. India is a member of the International Grains Council. 2. A country needs to be a member of the International Grains Council for exporting or importing rice and wheat. Which of the statements given above is/are correct ?

IAS · 2002 · Q85 Relevance score: 1.76

With reference to the public Sector Undertaking in India, consider the following statements : 1. Minerals and Metals Trading Corporation of India Limited is the largest non-oil importer of the country. 2. Project and Equipment Corporation of India Limited is under the Ministry of Industry. 3. One of the objectives of Export Credit Guarantee Corporation of India Limited is to enforce quality control and compulsory pre-shipment inspection of various exportable commodities Which of these statements is/are correct?