Ziraat Times News Desk
Decision to boost domestic production of Graphite, Caesium, Rubidium, and Zirconium; expected to reduce import dependency and attract fresh investments in mineral exploration
New Delhi, November 12: In a move aimed at strengthening India’s green energy and high-tech manufacturing ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the rationalisation of royalty rates for four critical minerals — Graphite, Caesium, Rubidium, and Zirconium — vital to the global energy transition and advanced technology sectors.
Under the revised framework, the royalty rates have been set as follows:
Mineral |
Royalty Rate |
|---|---|
Caesium |
2% of Average Sale Price (ASP) of Caesium metal chargeable on Caesium content in the ore produced |
Graphite (≥80% fixed carbon) |
2% of ASP on ad valorem basis |
Graphite (<80% fixed carbon) |
4% of ASP on ad valorem basis |
Rubidium |
2% of ASP of Rubidium metal chargeable on Rubidium content in the ore produced |
Zirconium |
1% of ASP of Zirconium metal chargeable on Zirconium content in the ore produced |
Officials said the decision will facilitate the auction of mineral blocks containing Caesium, Rubidium, and Zirconium, unlocking not only these high-value minerals but also associated critical minerals such as Lithium, Tungsten, Rare Earth Elements (REEs), and Niobium that are often found together.
By moving to an ad valorem system for Graphite, the government has ensured that royalty collections will now reflect market price fluctuations across grades, making mining operations more transparent and responsive to global trends.
The step is expected to enhance indigenous mineral production, reduce import dependency, and create employment opportunities in exploration, mining, and downstream manufacturing.
These four minerals play a critical role across clean energy, defence, and high-tech sectors:
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Graphite is essential for electric vehicle (EV) batteries, where it serves as the anode material providing high conductivity and charge capacity. India currently imports 60% of its Graphite needs. At present, nine Graphite mines are operational, and 27 additional blocks have been auctioned, with another 20 handed over by GSI and MECL for future auctions.
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Zirconium is used in nuclear power, aerospace, and healthcare, owing to its corrosion resistance and heat stability.
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Caesium is key to atomic clocks, GPS systems, and medical equipment, including cancer therapy devices.
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Rubidium is used in specialty glasses, fibre optics, night vision technology, and telecommunications.
Both Graphite and Zirconium are included in the list of 24 critical and strategic minerals under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
The Cabinet’s approval comes shortly after the government’s sixth tranche of auctions for critical mineral blocks was announced on September 16, 2025, which includes five Graphite blocks, two Rubidium blocks, and one each of Caesium and Zirconium.
The new royalty rates will enable prospective bidders to make more rational and competitive financial bids, promoting transparency and higher participation from the private sector.
By incentivising domestic mining of critical minerals, the move aligns with India’s broader objectives under the National Critical Minerals Strategy and the Atmanirbhar Bharat vision.
It also supports the nation’s energy transition goals, reducing dependence on imports for clean energy components such as EV batteries, solar cells, and advanced electronics.
Officials noted that royalty rates for most critical minerals have been kept between 2% and 4% to balance government revenue with investor viability.
The decision marks another step toward positioning India as a reliable global supplier of critical minerals essential for clean technology, electric mobility, and industrial innovation.
Industry experts have welcomed the decision, calling it a long-overdue reform that will attract domestic and foreign investment in mineral exploration.
“This rationalisation will make India’s mineral policy globally competitive. It ensures predictability for investors while supporting the nation’s clean energy ambitions,” said a mining policy analyst based in New Delhi.
