Key Changes to Auction Rules
Liberalization of Captive Mine Sales (Rule 6)
Under rule 6(4), lease holders of captive mines can now sell minerals produced after meeting their captive consumption needs, replacing the previous restriction that limited market sales to up to 50% of production. This shift promotes greater market participation while ensuring core captive usage.
Inclusion of Additional Minerals (Rule 8)
In rule 8(5), the amendment substitutes provisions to allow minerals to be included in mining leases as per section 15B, moving away from fixed percentage-based payments to the State Government based on bidder quotes.
Updates to Composite License Provisions (Rule 10)
Amendments to rule 10 insert references to section 15B in sub-rules (7) and (8), ensuring alignment with the broader regulatory framework for mining operations.
Simplification in Transfer and Mortgage Rules (Rule 16)
The proviso in rule 16(1) has been omitted, simplifying the process for transfers and mortgages of mining leases.
Enhancements to Security Deposit Rules (Rule 18)
Similar to rule 10, rule 18 now incorporates section 15B in sub-rules (11) and (12), broadening the scope for security deposits in auctioned leases.
Restrictions on Atomic Minerals (Rule 21)
Rule 21(1)(b) has been updated to prohibit the inclusion of atomic minerals (as per Part B of the First Schedule) with grades equal to or above the notified threshold in leases for other minerals, safeguarding strategic resources.
Implications for the Mining Sector
These amendments are expected to boost efficiency in captive mining operations, encourage investment, and align auction processes with recent legislative changes under section 15B. Industry stakeholders anticipate increased liquidity in mineral markets and smoother lease integrations.
Source
This article is based on the official notification G.S.R. 776(E) issued by the Ministry of Mines, Government of India, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), on October 22, 2025. The principal rules were originally notified vide G.S.R. 406(E) on May 20, 2015, with the last amendment via G.S.R. 764(E) on October 17, 2025. Issued by Dinesh Mahur, Joint Secretary (F. No. M.VI-16/112/2025-Mines VI).