Lok Sabha Question No. 705 (UNSTARRED), answered on 2026-02-04
Subject: Impact of the Amendments made in MMDR Act
Ministry: MINES
Asked by: Shri Ashok Kumar Rawat, Shri Kripanath Mallah, Shri Naba Charan Majhi, Smt. Vijaylakshmi Devi, Shri Manish Jaiswal, Shri Khagen Murmu, Shri Vishnu Dayal Ram, Dr. Rajesh Mishra, Shri Balabhadra Majhi, Shri Darshan Singh Choudhary, Shri Rodmal Nagar, Shri Manoj Tiwari

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO. †705 ANSWERED ON 04.02.2026

## IMPACT OF THE AMENDMENTS MADE IN MMDR ACT

†705.  DR. RAJESH MISHRA:

SHRI KRIPANATH MALLAH:

SHRI MANISH JAISWAL:

SHRI DARSHAN SINGH CHOUDHARY:

SHRI VISHNU DAYAL RAM:

SHRI ASHOK KUMAR RAWAT:

SHRI BALABHADRA MAJHI:

SMT. VIJAYLAKSHMI DEVI:

SHRI MANOJ TIWARI:

SHRI KHAGEN MURMU:

SHRI RODMAL NAGAR:

SHRI NABA CHARAN MAJHI:

Will the Minister of MINES be pleased to state:

- (a)  the  details  of  the  impact  of  the  amendments  made  in  the  Mines  and  Minerals (Development  and  Regulation)  Act  (MMDRA)  and  Mineral  Auction  Rules  on accelerating the auction and commencement of operations of mineral blocks in the country, particularly in Odisha;
- (b) the effectiveness of the newly introduced intermediaries timelines, penalties and incentives in reducing delays caused by bidders or States, with specific outcomes in Odisha;
- (c) the measures taken by the Government to ensure balanced participation of newly entering States in the auction process and the details of participation of mineral block in Odisha, particularly in the Nabarangpur region;
- (d) the details of proposed steps to further expedite the commencement of operations of auctioned mineral blocks in order to increase domestic mineral production and the likely benefits particularly for Odisha including Nabarangpur district;
- (e) whether  there is any  proposal  to create dedicated  corridors for mineral transportation along with mineral auctions, if so, the details thereof; and
- (f) whether there is any proposal for a dedicated corridor at Singrauli?

## ANSWER

## THE MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a): The Mines and Minerals (Development and Regulation), Act, 1957 (MMDR Act) was amended in 2015 to introduce auction for grant of mineral concessions. Further amendments in 2021 facilitated faster auction and operationalisation of mineral blocks by  removing  end-use  restrictions,  permitting  sale  of  minerals  from  captive  mines, providing  for  automatic  transfer  of  statutory  clearances  to  the  successful  bidder selected though auction and allowing transfer of mineral concessions. The auction framework was simplified by permitting auction of Composite Licence blocks at G4 level and Mining Lease blocks for surficial minerals at G3 level. Pursuant to the MMDR Amendment Act, 2023,  the  Central  Government  has  been  empowered  to  conduct auctions, including for critical and strategic mineral blocks. Till date, 46 critical mineral blocks have been auctioned by the Central Government. These reforms apply to all States including Odisha.

Since the introduction of the auction regime in 2015, 108 blocks were auctioned up to FY 2020-21. Following the mining sector reforms in 2021, a total of 498 blocks have been auctioned from FY 2021-22 to FY 2025-26 (till date). In respect of Odisha, a total of 60 mineral blocks have been auctioned since 2015. Further, due to various reforms, the pace of operationalization has also increased. 56 blocks were operationalized up to  FY  2024-25,  while  in  FY  2025-26  (till  date),  26  blocks  have  already  been operationalized.  In  respect  of  Odisha,  a  total  of  30  mineral  blocks  have  been operationalized, of which 4 in FY 2025-26 (till date).

(b): Ministry of Mines has amended the Mineral (Auction) Rules, 2015 with effect from 17.10.2025 whereby intermediary timelines have been introduced in the Rules in order to fast-track the operationalization of auctioned mineral blocks. These Rules apply to all States including Odisha.

The  Rules  provide  for  appropriation  of  1%  of  the  performance  security  for  delay (attributable  to  the  bidder)  of  each  month  or  a  part  of  month  beyond  the  above timelines. The Rules also provide for adjustment of the appropriated amount, if any, against  the  auction  premium  payable,  if  the  final  milestone  is  achieved  within  the stipulated  overall  timeframe.  Further,  the  Rules  also  provide  for  reduction  in  the amount of second installment of the upfront payment by 5% for the delay of each month or a part of month by the State Government in issuing the letter of intent to the preferred bidder beyond the stipulated time.

Further, an incentive has been provided for early commencement of production from the auctioned mines. The lessee is required to pay only 50% of the auction premium for the mineral produced, within five years from the date of issue of letter of intent for grant of mining lease or within seven years from the date of issue of letter of intent for grant of composite licence.

(c):  States  put  up  blocks  for  auction  depending  on  resources  explored  and  blocks carved out. Ministry of Mines, through regular review meetings with State Governments, encourages States to auction more mineral blocks. In addition, under the National Mineral Exploration and Development Trust (NMEDT), State Governments are provided financial incentives of ₹20 lakh for each successful auction of a mineral block and reimbursement of 50% of the amount paid to the Transaction Advisor, subject to a ceiling of ₹5 lakh per block, for blocks put up for auction but could not be auctioned. These measures apply to all States including Odisha.

(d): Ministry of Mines has taken several measures to fast-track operationalisation of auctioned  mineral  blocks  and  increase  domestic  mineral  production.  Important measures  include  regular  high-level  review  meetings,  introduction  of  intermediary timelines under the Mineral (Auction) Rules, financial incentives through the Scheme of  Special  Assistance  to  States  for  Capital  Investment  (SASCI)  2025-26,  and monitoring  through  a  dedicated  Project  Management  Unit  and  Mining  Dashboard. These measures apply to all States including Odisha.

(e) & (f): After mineral auction and mine operationalization, miners utilize the existing rail-road  infrastructure  in  the  country  for  transportation  of  minerals.  Ministry  of Railways  increases  capacity  of  high  traffic  density  rail  routes  as  well  as  creates dedicated corridors as per need, for easy transportation of commodities spanning all economic sectors, including mining.

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