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Informist, Wednesday, Nov. 12, 2025

 

NEW DELHI – The Union Cabinet Wednesday approved rationalisation of royalty rates for four minerals - Graphite, Zirconium, Caesium and Rubidium – deemed critical for green-energy transition and strategic supply chains. The move is aimed at boosting domestic production and reducing import dependence, an official release said.

 

Under the revised structure, the royalty for graphite will shift from a per-tonne basis to an ad valorem basis. Graphite with 80% or more fixed carbon will attract a royalty of 2% of the average sale price, while other grades will be charged a royalty of 4% of the average sale price, the release said. The royalty rate for zirconium has been fixed at 1% of the average sale price and for caesium and rubidium at 2% of the average sale price.

 

These four minerals will now be included among those eligible for auction under the Mines and Minerals (Development and Regulation) Act, 1957. The move is expected to facilitate the auction of new mineral blocks and promote indigenous exploration and production, the release said.

 

The revised rates and auction mechanism will help unlock India's potential in critical minerals needed for green energy technologies and advanced manufacturing. It will also align the country's mineral policy with global trends in securing supplies of strategic minerals, which are essential for batteries, semiconductors, and defence applications, the release said.

 

Graphite is a crucial component in electric vehicle batteries, primarily serving as the anode material, which enables high conductivity and charge capacity. However, India imports 60% of its graphite requirements. At present, nine graphite mines are working in the country and another 27 blocks have been successfully auctioned.

 

Zirconium is a versatile metal used across industries, including nuclear energy, aerospace, healthcare, and manufacturing, due to its exceptional corrosion resistance and high-temperature stability. Caesium is mainly used in the high-tech electronics sector, particularly in atomic clocks, other high-precision instruments, and medical devices, including those used for cancer therapy. Rubidium is used to make speciality glasses for fibre-optic systems, telecommunications, and night-vision devices.   End

 

Reported by Pallavi Singhal

Edited by Saji George Titus

 

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