In a major effort to strengthen India’s mineral reserves, the Nayakkarpatti Tungsten Block in Tamil Nadu, covering 20.16 square kilometers, has been successfully sold to Hindustan Zinc Ltd.
The government has ensured that strict environmental protection will be applied throughout the project, to maintain a balance between development and conservation.
The auction, which was completed on November 7, 2024, follows the amendments to the Mines and Minerals (Development and Control) Act, 1957.
Updated in 2023, the Act empowers the Central Government to sell only essential and strategic minerals, improving India’s ability to meet the world’s mineral needs.
Concerns raised by the Tamil Nadu government about the environmental value of parts of the block were addressed before the auction. The 1.93-square-kilometer area between the villages of Aritapatti and Meenakshipuram has been designated as a Biodiversity Heritage Site and will remain untouched. Officials confirmed that mining and exploration are strictly prohibited in those protected areas, in line with the guidelines of the Ministry of Environment, Forests, and Climate Change (MoEF&CC).
Additionally, forest and environmental clearance is mandatory before any mining concession is granted. These safeguards ensure that environmentally sensitive regions and cultural heritage sites are preserved, underscoring the government’s commitment to sustainable development.
The Nayakkarpatti Tungsten Block was sold as a composite license, requiring Hindustan Zinc to carry out detailed exploration to confirm the existence of mineral reserves. Only areas with proven deposits will be eligible for mining leases, which minimizes environmental disturbance.
The auction process, which began in February 2024, did not face any complaints or withdrawal requests from stakeholders, including the Tamil Nadu government. Officials praised the transparency and accuracy of the process, highlighting the bloc’s potential to develop India’s strategic mineral portfolio.
Government officials have emphasized that the auction represents a considered approach to mineral development. While the mining sector is important for economic growth, preserving India’s natural and cultural heritage remains a priority. Strict adherence to MoEF&CC guidelines and other regulatory norms will ensure that Nayakkarpatti Tungsten Block becomes a model of responsible mining.
