New Delhi, Nov 30: The Congress Party has strongly criticized the central government over its management of lithium reserves discovered in Jammu and Kashmir, accusing it of indulging in premature celebrations and lacking proper planning. Congress leader Jairam Ramesh highlighted the issue as an example of the Modi government’s alleged focus on headlines rather than substantive action.
In a post on X, Ramesh, the Congress general secretary in charge of communications, laid out a detailed timeline to illustrate his concerns.
On February 13, 2023, the Modi government announced, with much fanfare, the discovery of what it described as one of the world’s largest lithium reserves in Reasi, Jammu and Kashmir. The announcement was touted as a significant step towards reducing India’s reliance on lithium imports, crucial for electric vehicles and renewable energy storage.
In November 2023, the first auction for the lithium reserves was conducted but failed due to insufficient participation, as the minimum requirement of three bids was not met. The auction was subsequently canceled.
A second round of auctions was announced in March 2024, but by July 2024, it emerged that no bids had been received. Ramesh claimed the reluctance of companies stemmed from inadequate exploration data, a critical flaw in the government’s preparation.
By October 2024, the Geological Survey of India (GSI) was directed to conduct a re-exploration of the reserves, which had earlier been proclaimed as one of the largest known lithium deposits globally. Ramesh pointed out that despite the grand announcements, the data supporting these claims was insufficient to attract credible investors.
Ramesh termed the government’s actions as “typical of the headline-obsessed Modi administration,” accusing it of prioritizing publicity over groundwork. “This is a case of premature celebration,” he remarked, emphasizing that auctions are now deferred by at least six months, with a realistic timeline likely to stretch even further.
In July 2024, the Congress criticized the cancellation of the lithium mine auction, linking it to the “failing security situation” in Jammu and Kashmir. The party claimed that security concerns were a significant deterrent for investors and highlighted this as an example of the Modi government’s broader policy failures.
The Congress leader also reiterated that lithium, a critical resource for India’s clean energy transition, should have been managed with a more strategic and data-driven approach. The lack of sufficient exploration and security assurances not only undermined investor confidence but also delayed a project that could have been a game-changer for India’s energy independence.
While the government has not yet responded to the Congress’ accusations, the sequence of events raises serious questions about planning, execution, and the sustainability of India’s resource management strategy. As global competition for critical minerals intensifies, stakeholders are left wondering whether India can effectively leverage its natural resources amidst such policy missteps.
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