Chennai: In a significant move, the Government of India, amid opposition, has instructed the Geological Survey of India (GSI) to reassess the Nayakkarpatti Tungsten Block in Madurai district, Tamil Nadu, with a focus on redefining its boundaries to exclude a biodiversity site spanning 193.215 hectares. This decision aims to address environmental concerns raised by stakeholders after the block’s auction.
Earlier this month, the Tamil Nadu Legislative Assembly had adopted a resolution urging the Centre to withdraw the tungsten mining rights awarded to Vedanta group company Hindustan Zinc Private Limited.
The Nayakkarpatti Tungsten Block, a critical mineral site, was identified and notified for auction as a composite licence in February. Hindustan Zinc. emerged as the preferred bidder on November 7, 2024. The auction followed amendments to the Mines and Minerals (Development and Regulation) Act, 1957, enacted in August 2023, which granted the Central Government exclusive rights to auction critical and strategic minerals like tungsten, a PIB release said.
Despite earlier awareness of the biodiversity site within the block, the Tamil Nadu Government did not oppose the auction. During 2021-2023, when states had the power to auction such blocks, Tamil Nadu failed to conduct any auctions. The State Government later questioned the centralisation of powers but did not explicitly advise against the auction of this block, even while providing details of three critical mineral blocks for auction.
A composite licence, under the Mineral (Auction) Rules, mandates that exploration precede mining, with necessary clearances obtained before mining lease issuance. This process allows eco-sensitive zones to be excluded during the licensing stage. However, recent concerns about the environmental impact prompted the Central Government to take precautionary steps to safeguard biodiversity.
The Ministry of Mines, which has so far auctioned 24 critical mineral blocks across the country, reiterated that its role is limited to facilitating auctions in the national interest. Post-auction processes, including issuing licences and modifying block boundaries, remain the prerogative of state governments.
The biodiversity concerns raised post-auction have led the Ministry to halt the issuance of the Letter of Intent (LOI) for the Nayakkarpatti block. GSI has been tasked with re-examining the site to determine the feasibility of modifying the block boundaries.
In view of this re-examination, the Government of Tamil Nadu has been advised to temporarily pause the finalisation of the auction process, ensuring that ecological and economic priorities align effectively.
