Stalled Bids: Lack of Data Hinders Lithium Auction in J&K

Congress leader Jairam Ramesh criticized the Indian government's handling of lithium reserve auctions in Jammu and Kashmir, attributing delays to insufficient exploration data. Initial auctions were canceled due to a lack of bids, and despite plans for future attempts, uncertainties persist due to inadequate geological assessments.

In a pointed critique, Congress leader Jairam Ramesh on Saturday accused the Central government of bungling the auction process for lithium reserves in Jammu and Kashmir. According to Ramesh, the auctions have stalled due to insufficient exploration data, causing companies to hesitate in bidding for these potentially lucrative reserves.

Initially touted as a major discovery, the government announced on February 13, 2023, that the reserves in J&K were among the world's largest. However, the inaugural auctions in November 2023 failed, as they did not meet the minimum requirement of three bids. A subsequent round announced for March 2024 also proved fruitless, with no bids received by July 2024. This prompted the Geological Survey of India to revisit their exploration efforts in October 2024.

Ramesh criticized what he termed as a "headline-driven approach" by the Modi government, suggesting that the initial announcement was premature and lacked substance. The Ministry of Mines has acknowledged the importance of lithium, a critical component of electric vehicle batteries, and plans for future auctions remain tentative as further exploration data is awaited.

(With inputs from agencies.)