The Ministry of Mines has notified an amendment to the Mineral (Auction) Rules, 2015, introducing intermediate timelines for various activities to be completed after the issuance of a Letter of Intent (LoI) up to the execution of the mining lease.
Since the commencement of the auction regime in 2015, a total of 585 major mineral blocks have been successfully auctioned, including 34 critical mineral blocks auctioned by the Central government.
Initially, the pace of auctions was slow; however, over the past three years, an average of more than 100 mineral blocks have been successfully auctioned each year. In the current year alone, 112 mineral blocks have already been auctioned successfully in the first seven months.
Alongside the increase in auctions, the operationalisation of auctioned mines needs to be expedited to boost mineral production. To this end, the Ministry of Mines has undertaken several measures, including regular meetings with successful bidders, State governments, and other stakeholders.
The Ministry has also established a Project Monitoring Unit (PMU) to oversee the operationalisation of mines.
“As the latest step in its endeavour to fast-track operationalisation, the Ministry of Mines notified an amendment to the Mineral (Auction) Rules, 2015 on 17 October 2025, introducing intermediate timelines for various activities to be completed from the issuance of the LoI to the execution of the mining lease,” the Ministry said on Sunday.
Prior to this amendment, the rules prescribed only a broad timeframe of three years (extendable by an additional two years) for executing the mining lease from the date of issuance of the LoI. Failure to meet this milestone resulted in annulment of the block’s auction.
However, there was no mechanism to monitor progress across the various stages between the issuance of the LoI and execution of the lease, limiting opportunities for mid-course corrective action.
The amended rules now introduce intermediate timelines that must be adhered to, with penalties prescribed for delays. Penalties have been kept reasonable, and if the final milestone is achieved within the stipulated timeframe, any penalties incurred for earlier delays will be adjusted against the auction premium payable.