Lithium mining project example of Modi govt’s failure, says Congress

New Delhi, July 30

Days after the government scrapped the auction of a lithium mine in Jammu and Kashmir, the Congress on Tuesday claimed the project was an illustrative example of the Modi government’s “failures” and said it was the “failing security situation” in the region that was precluding investors from interest in the lithium reserves in Reasi.

Congress general secretary Jairam Ramesh said the repeated message of the “non-biological prime minister” and his ministers since August 5, 2019, was that the government’s actions would stabilise the security situation in Jammu and Kashmir and provide a fillip to investment in the region.

Failing security situation

It is not financial disinterest that is precluding investors from interest in the lithium reserves in Reasi — it is the failing security situation in the region. Twelve soldiers in Jamp;K have been martyred in terrorist attacks in July alone. —Jairam Ramesh, Congress leader

“It’s time for a new, more humble, and more consultative approach,” he said in a post on X.

His remarks came after the government scrapped the auction of three critical mineral blocks, including a lithium mine in Jammu and Kashmir, under the third tranche of sale of mines due to a lower-than-required number of bidders.

“The lithium mining project in Jammu and Kashmir is an illustrative example of the failures of the non-biological prime minister’s government. The government generated considerable excitement — and rightfully so — about the discovery of nearly six million tons of lithium in the Salal-Haimana area of Reasi district in Jammu and Kashmir,” Ramesh said.

“A year later, however, it has had to scrap two rounds of auctions for rights to mining in the area after failing to generate enough interest from investors,” he added.

Lithium is among the most sought-after minerals of the 21st century and has a key role in the energy transition, Ramesh noted.

Globally, there has been an investor rush to secure reliable access to lithium mining rights, he said. “It is not financial disinterest that is precluding investors from interest in the lithium reserves in Reasi — it is the failing security situation in the region. Twelve soldiers in Jammu and Kashmir have been martyred in terrorist attacks in July alone, and Reasi itself saw a dastardly attack on a civilian bus on June 9, 2024,” the Congress leader said.

“The finance minister has now reduced import duty on lithium to zero in the Union budget. This decision, which would make it harder for newer, domestic mines to compete, appears to be an acknowledgement that we are many years away from seeing any commercialisation of this project,” he said.