The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the rationalisation of royalty rates for Graphite, Caesium, Rubidium, and Zirconium — minerals that play a vital role in high-tech applications and India’s green energy transition.
As per the decision, the royalty rate for Caesium and Rubidium has been fixed at 2 percent of the average sale price (ASP) of the metal contained in the ore produced. For Zirconium, the rate will be 1 percent of ASP, while for Graphite, the royalty will now be charged on an ad valorem basis — 2 percent for grades with 80 percent or more fixed carbon, and 4 percent for grades with less than 80 percent fixed carbon.
The government said the move will facilitate auctions of mineral blocks containing these elements, thereby unlocking their economic potential along with associated critical minerals such as Lithium, Tungsten, Rare Earth Elements (REEs), and Niobium. The decision is expected to boost domestic production, reduce import dependence, and generate employment opportunities.
Graphite and Zirconium are among the 24 critical and strategic minerals listed under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). Graphite, used as an anode material in electric vehicle (EV) batteries, is essential for high conductivity and energy efficiency. India currently imports about 60 percent of its Graphite requirement.
According to the Ministry of Mines, nine Graphite mines are presently operational in the country, while 27 more blocks have been auctioned and 20 additional blocks handed over by the Geological Survey of India (GSI) and Mineral Exploration and Consultancy Limited (MECL) for future auctions.
Zirconium finds applications in nuclear energy, aerospace, and healthcare, while Caesium is used in atomic clocks, GPS systems, precision instruments, and cancer therapy equipment. Rubidium is utilised in fibre optics, telecommunication systems, and night vision devices.
The Cabinet noted that the new royalty structure, falling within the general range of 2–4 percent applicable to most critical minerals, will bring greater transparency and price alignment across grades. It will also help bidders submit rational financial bids in the ongoing sixth tranche of critical mineral block auctions, which includes five Graphite blocks, two Rubidium blocks, and one each of Caesium and Zirconium.