Lok Sabha Question No. 485 (UNSTARRED), answered on 2025-12-03
Subject: Amendment to Mineral (Auction) Rules, 2015
Ministry: MINES
Asked by: Shri Bidyut Baran Mahato, Shri Bunty Vivek Sahu, Shri Yogender Chandolia, Shri Ravindra Shukla Alias Ravi Kishan, Shri Narayan Tatu Rane, Shri Hasmukhbhai Somabhai Patel, Shri Khagen Murmu, Shri Miteshbhai Rameshbhai Patel, Dr. Rajesh Mishra, Shri Chandan Chauhan, Smt. Shobhanaben Mahendrasinh Baraiya, Dr. Bhola Singh, Shri Dineshbhai Makwana

## GOVERNMENT OF INDIA

## MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 485

ANSWERED ON 03.12.2025

## AMENDMENT TO MINERAL (AUCTION) RULES, 2015

## 485.  SHRI YOGENDER CHANDOLIA:

SHRI NARAYAN TATU RANE:

SMT. SHOBHANABEN MAHENDRASINH BARAIYA:

SHRI HASMUKHBHAI SOMABHAI PATEL:

SHRI MITESH PATEL BAKABHAI:

SHRI DINESHBHAI MAKWANA:

SHRI BIDYUT BARAN MAHATO:

SHRI CHANDAN CHAUHAN:

DR. BHOLA SINGH:

SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN:

SHRI KHAGEN MURMU:

DR. RAJESH MISHRA:

SHRI BUNTY VIVEK SAHU:

Will the Minister of MINES be pleased to state:

- (a) the rationale behind the recent amendments to the Mineral (Auction) Rules, 2015 introducing intermediate timelines to promote faster operationalization of mines and the likely impact of these amendments on the auctioned / proposed mineral blocks located in Chhindwara district of Madhya Pradesh;
- (b) the key milestones and corresponding timelines prescribed for mining leases and composite  license  blocks  as  per  the  amended  rules  and  the  special  monitoring mechanisms established for mining areas in Chhindwara district to ensure adherence to these timelines;
- (c) the details of the incentives and penalties applicable for the early commencement or delay in production under the amended rules;
- (d)  the  expected  impact  of  the  said  reforms  on  the  timely  operationalization  of auctioned  mineral  blocks,  the  increase  in  mineral  production  as  well  as  local employment and industrial development particularly in Chhindwara district;
- (e) whether any new coal blocks have been allotted in Singrauli or Sidhi district;
- (f) if so, the details thereof; and
- (g) whether the Union Government proposes mechanisms to assist States like Uttar Pradesh  in  operationalising  minor  mineral  blocks  that  supply  construction  raw materials to districts such as Bulandshahr and if so, the details thereof?

## ANSWER

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

(a): The 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 timelines are applicable for all auctioned blocks including those located in Chhindwara district of Madhya Pradesh.

(b): The key milestones and corresponding timelines prescribed for mining leases and composite license blocks as per the amended rules are given in Annexure I .

As  per  the  amended  Rules,  the  State  Governments  are  required  to  constitute  a committee under the chairmanship of the Director, Directorate of Mines and Geology of the State Government (by whatever name called) with members from the Indian Bureau  of  Mines,  and  Revenue  Department,  Forest  Department,  Environment Department and such other concerned Department of the State Government to take a decision as to whether delay or non-compliance is attributable to the preferred bidder after giving reasonable opportunity of being heard to such bidder. This mechanism is applicable for all auctioned blocks including those located in Chhindwara district  of Madhya Pradesh.

(c): 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.

(d):  The  intermediary  timelines  provide  a  mechanism  to  monitor  progress  of operationalization of auctioned mines across various stages from issuance of the letter of intent till execution of the mining lease. These timelines are meant to ensure faster operationalization of the mines, thereby, increasing mineral production significantly as well as local employment and industrial development including in Chhindwara district.

(e) & (f): As per the information received from Ministry of Coal, a total of nine coal blocks  have  been  allotted  in  Singrauli  district  under  the  commercial  auctions  from June, 2020 onwards. The details of these blocks are given in Annexure II .

(g): As per Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957, the State Governments are empowered to make rules for regulating the grant of quarry  leases,  mining  leases  or  other  mineral  concessions  in  respect  of  minor minerals  and  for  purposes  connected  therewith.  The  complete  administration  and regulation of minor minerals vests with the State Governments.

*****

## Annexure-I

## Referred in reply to part (b) of Lok Sabha Unstarred Question No. 485

## For Mining Lease:

|   Sl. No. | Milestone                                                                            | Timeline                                                                             |
|-----------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
|         1 | Approval of mining plan                                                              | Within 6 months from issue of letter of intent for mining lease                      |
|         2 | Grant of environment clearance Within 18 months from the completion of Milestone - 1 | Grant of environment clearance Within 18 months from the completion of Milestone - 1 |
|         3 | Execution of mining lease                                                            | Within 12 months from the completion of Milestone - 2                                |

## For Composite Licence:

|   Sl. No. | Milestone                                                                                                                                                                                                                                                          | Timeline                                                        |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|
|         1 | Execution of composite licence                                                                                                                                                                                                                                     | Within 12 months from letter of intent for composite licence    |
|         2 | Completion of at least G2level of prospecting in the entire licenced area in accordance with the Minerals (Evidence of Mineral Contents) Rules, 2015 and submission of report of prospecting operations to Indian Bureau of Mines and State Government Milestone-1 | Within 36 months from the completion of                         |
|         3 | Approval of mining plan                                                                                                                                                                                                                                            | Within 6 months from issue of letter of intent for mining lease |
|         4 | Grant of environment clearance                                                                                                                                                                                                                                     | Within 18 months from the completion of Milestone-3             |
|         5 | Execution of mining lease                                                                                                                                                                                                                                          | Within 12 months from the completion of Milestone-4             |

## Annexure-II

## Referred in reply to part (e) & (f) of Lok Sabha Unstarred Question No. 485

|   Sl. No. | Mine                   | Successful Bidder                            | CMSP Act / MMDR Act   | Date of allocation   |
|-----------|------------------------|----------------------------------------------|-----------------------|----------------------|
|         1 | Dhirauli               | Stratatech Mineral Resources Private Limited | MMDR Act              | 03.03.2021           |
|         2 | Bandha                 | EMIL Mines and Mineral Resources Limited     | MMDR Act              | 03.03.2021           |
|         3 | Gondbhaera Ujheni East | MP Natural Resources Private Limited         | MMDR Act              | 10.10.2022           |
|         4 | Bandha North           | Jaiprakash Power Ventures Limited            | MMDR Act              | 12.12.2022           |
|         5 | Marki Barka            | Birla Corporation Limited                    | CMSP Act              | 17.01.2023           |
|         6 | Gondbahera Ujheni      | MP Natural Resources Private Limited         | MMDR Act              | 08.06.2023           |
|         7 | Mara II Mahan          | Mahan Energen Ltd                            | CMSP Act              | 01.08.2024           |
|         8 | Mahan                  | JK Cement Ltd.                               | CMSP Act              | 18.12.2024           |
|         9 | Sarai East (South)     | ACC Ltd                                      | MMDR Act              | 04.02.2025           |