Cabinet Approves Rationalization Of Royalty Rates For Critical Minerals
The Union Cabinet on 12th November 2025 gave its approval for the rationalization of royalty rates for minerals critical green energy. The cabinet, chaired by Prime Minister Narendra Modi agreed to specify or revise the royalty rates for Caesium, Graphite, Rubidium and Zirconium.
The government’s decision is aimed at promoting auction of mineral block that contain there minerals, as well as other minerals that are found with them, such as Lithium, Tungsten, REES, Niobium etc. By increasing the production of these minerals indigenously, the government hopes to reduce their supply chain vulnerabilities by reducing their imports. The move will also generate employment opportunities across the country.
The government had on 16 September 2025 issued notices inviting tenders (NIT) for minerals blocks containing five blocks of Graphite, two blocks of Rubidium, and one block each of Caesium and Zirconium. The government’s approval of royalty rates will help the bidders submit their financial bids on the back of these rates.
Graphite, Caesium, Rubidium and Zirconium are important minerals for high-tech applications and energy transition. Graphite finds use in EV batteries as it has a very high charge capacity. But India imports more than 60% of graphite requirements. Zirconium, on the other hand, has high temperature stability and exceptional corrosion resistance and finds uses in industries such as nuclear energy, aerospace, healthcare and manufacturing. Caesium is mainly used in high-tech electronic sector, particularly in atomic clocks, GPS systems, other high precision instruments, medical instruments including in cancer therapy, etc. Rubidium is used in making specialty glasses used in fibre optics, telecommunication systems, night vision devices etc.
Graphite and Zirconium are among the 24 critical and strategic minerals listed in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
The royalty rates approved by the Union Government are:
| Mineral | Royalty Rate |
| Caesium | 2% of Average Sale Price (ASP) of Caesium metal chargeable on the Caesium metal contained in the ore produced. |
| Graphite (i) With eighty per cent or more fixed carbon (ii) With less than eighty per cent fixed carbon | 2% of ASP on ad valorem basis 4% of ASP on ad valorem basis |
| Rubidium | 2% of ASP of Rubidium metal chargeable on the Rubidium metal contained in the ore produced |
| Zirconium | 1% of ASP of Zirconium metal chargeable on the Zirconium metal contained in the ore produced |
