Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-17102025-267001
EXTRAORDINARY
PART II-Section 3-Sub-section (i)
PUBLISHED BY AUTHORITY
No. 680]
NEW DELHI, FRIDAY, OCTOBER 17, 2025/ASVINA 25, 1947
6999 GI/2025
(1)
MINISTRY OF MINES
NOTIFICATION
New Delhi, the 17th October, 2025
G.S.R. 764(E). — In exercise of the powers conferred by section 13 of the Mines and Minerals (Development
and Regulation) Act, 1957 (67 of 1957), the Central Government hereby makes the following rules further to amend the
Mineral (Auction) Rules, 2015, namely:—
1. Short title and commencement.— (1) These rules may be called the Mineral (Auction) Second Amendment
Rules, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Mineral (Auction) Rules, 2015 (hereinafter referred to as the said rules), in rule 9, in sub-rule (9), in clause
(iii), after the words "on conclusion of the auction", the words "automatically by the online electronic auction platform
for public view" shall be inserted.
3. In the said rules, in rule 10,—
(i) in sub-rule (1), —
(a) for the words "within fifteen days", the words and figures “and furnish performance security as specified in
rule 12 within forty five days" shall be substituted;
(b) for the proviso, the following proviso shall be substituted, namely:-
"Provided that in case where preferred bidder is declared before the commencement of the Mineral
(Auction) Second Amendment Rules, 2025, such preferred bidder shall furnish performance security within
six months of the commencement of the said rules and in case of failure to furnish the performance security
within the said period, the letter of intent shall be invalidated leading to annulment of the entire process of
auction.";
(ii) for sub-rule (2), the following sub-rule shall be substituted, namely:—
"(2) Upon receipt of the first instalment of the upfront payment and performance security, the State Government
shall issue a letter of intent to the preferred bidder within thirty days of receipt of such payment and performance
security.";
(iii) after sub-rule (2), the following sub-rule shall be inserted, namely:-
"(2A) In case the State Government does not issue the letter of intent to the preferred bidder within the time
specified in sub-rule (2), the amount of second installment of the upfront payment payable under clause (b) of
sub-rule (3) of this rule and rule 11 shall reduce by five per cent. for the delay of each month or a part thereof in
issue of the letter of intent and the preferred bidder shall pay only the remaining amount as the second
installment.";
(iv) in sub-rule (3), clause (c) shall be omitted;
(v) in sub-rule (6), —
(a) in the second proviso, for the words "if the reasons for delay were beyond the control of the preferred
bidder", the words, “if the State Government is satisfied that the preferred bidder shall be able to comply
with all requirements for execution of the mining lease deed within such extended period and the preferred
bidder has paid all three instalments of the upfront amount before allowing such further period" shall be
substituted;
(b) after the second proviso, the following explanation shall be inserted, namely:—
"Explanation.- For the purpose of this rule, it is clarified that in case of annulment of the auction due to
non-compliance of conditions under these rules, the bid security or the performance security, as the case may
be, and any instalment of upfront payment paid shall be forfeited.".
4. In the said rules, after rule 10, the following rules shall be inserted, namely:-
"10A. Timelines for execution of mining lease of mineral block auctioned for mining lease. - (1) Subject to the
provisions of rule 10, a preferred bidder for grant of mining lease shall comply with the timelines specified in
Schedule VI for each milestone.
(2) In case of delay in compliance or non-compliance of the timelines for the completion of milestones specified
in the said Schedule, a committee (hereinafter referred to as the said 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 shall take a decision as to
whether delay or non-compliance is attributable to the preferred bidder or the successful bidder, as the case
may be, after giving reasonable opportunity of being heard to such bidder.
(3) Where such delay or non-compliance is decided by the said committee to be attributable to the preferred
bidder or successful bidder, as the case may be, the State Government shall appropriate such percentage of
performance security as specified in Schedule VI.
(4) Upon appropriation of performance security, the preferred bidder or the successful bidder, as the case may
be, shall recoup or top-up the performance security within a period of two months period from the date of
issue of the order of appropriation.
(5) The completion time provided for the milestones specified in Schedule VI shall not prohibit the preferred
bidder or the successful bidder, as the case may be, from obtaining clearances, permission or the like
concurrently or earlier than the time provided, if allowed under the law relating to such clearance,
permission or the like.
(6) The decision of the said committee on appropriation or non-appropriation of performance security on delay
or non-compliance of the timelines shall not affect the liability of the preferred bidder or successful bidder,
as the case may be, for compliances of any other conditions or timelines required under the laws applicable
on such bidder.
(7) The appropriation or non-appropriation of performance security for non-compliance of the timelines
provided for above milestones shall not affect the decision of the State Government regarding extension of
period for execution of mining lease as per second proviso to sub-rule (6) of rule 10 and in any case, the
period provided under provisos to sub-rule (6) of rule 10 shall not be exceeded beyond the period of
extension allowed under the said provisos.
(8) Submission of incomplete application or not providing sufficient time to the respective Government
authority for processing and taking decision on the application, may be treated by the State Government as
'delay attributable to the preferred bidder or the successful bidder' in case of non-compliance of the
timelines.
(9) If the preferred bidder or the successful bidder, as the case may be, is able to complete the milestone - 3
specified in Schedule VI within the period of three years from the date of issue of letter of intent, then the
amount of performance security appropriated for delay in completion of any milestone (if any) shall be
adjusted by the State Government against auction premium payable by the successful bidder.
(10) The provision of this rule shall also be applicable in the cases where the letter of intent for mining lease has
been issued prior to the commencement of the Mineral (Auction) Second Amendment Rules, 2025 for the
milestones which are remaining to be complied by the preferred bidder or the successful bidder and the
timeline for the first of the milestones remaining to be complied in such case shall start from the date of
commencement of the said rules:
Provided that in such cases the period provided under the provisos to sub-rule (6) of rule 10 shall not be
exceeded beyond the period of extension allowed under the said provisos.".
5. In the said rules, in rule 13, in sub-rule (2), —
(i) in the first proviso, for the words "the scheduled date of commencement of production as given in the tender
document:" the following shall be substituted, namely:-
"five years from the date of issue of letter of intent for grant of mining lease:
Provided further that in case of auction of composite licence, the lessee shall pay only fifty per cent. of
the amount quoted under rule 8, for the quantity of mineral produced and dispatched earlier than seven years
from the date of issue of letter of intent for grant of composite:
Provided also that the above provisos shall not be applicable in case where vesting order has been issued
under rule 9A of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules,
2016:";
(ii) in the second proviso, for the words "provided further", the words "provided also" shall be substituted;
(iii) in the explanation,—
(a) for the words "first proviso", the words "first proviso and second proviso" shall be substituted;
(b) for the words "scheduled date of commencement of production", the words "date of commencement of
production as specified in this sub-rule" shall be substituted.
6. In the said rules, in rule 18,—
(i) in sub-rule (1), —
(a) for the words "within fifteen days after", the words "within forty-five days after" shall be substituted;
(b) for the words “within fifteen days of", the words "within thirty days of" shall be substituted;
(ii) in sub-rule (1A), in clause (b), for the words, brackets and figure "sub-rule (2)", the words, brackets and figure "sub-
rule (1)" shall be substituted;
(iii) after sub-rule (1A), the following sub-rule shall be inserted, namely:—
"(1B) In case the State Government does not issue the letter of intent to the preferred bidder within the time
specified in sub-rule (1) or sub-rule (1A), as the case may be, the amount of first installment of the upfront
payment payable under clause (b) of sub-rule (6) of this rule and rule 11 shall reduce by five per cent. for the
delay of each month or a part thereof in issue of the letter of intent and the preferred bidder shall pay only the
remaining amount as the first installment.”;
(iv) in sub-rule (3), —
(a) in the first proviso, for the word "Prospective", the word "Prospecting" shall be substituted;
(b) in the second proviso, for the words "Prospective Licence Deed, if the reasons for delay were beyond the
control of the preferred bidder", the words "prospecting licence deed, if the State Government is satisfied that
the preferred bidder shall be able to comply with all requirements for execution of the prospecting licence deed
within such extended period" shall be substituted;
(v) in sub-rule (6), —
(a) in clause (b), after the word and figures "rule 11", the words, brackets and figures "and the enhanced
performance security as specified in sub-rule (2) of rule 19" shall be inserted;
(b) after the second proviso, the following proviso shall be inserted, namely:—
"Provided also that in case where letter of intent for mining lease has been issued before the commencement
of the Mineral (Auction) Second Amendment Rules, 2025, the holder of composite licence shall furnish the
enhanced performance security as specified in sub-rule (2) of rule 19 within six months of the commencement of
the said rules and in case of failure to furnish the enhanced performance security within the said period, the letter
of intent shall be invalidated leading to annulment of the entire process of auction.";
(vi) after sub-rule (6), the following sub-rule shall be inserted, namely:-
"(6A) In case the State Government does not issue the letter of intent to the preferred bidder within the time
specified in clause (b) of sub-rule (6) of this rule, the amount of second installment of the upfront payment
payable under clause (b) of sub-rule (8) of this rule and rule 11 shall reduce by five per cent. for the delay of
each month or a part thereof in issue of the letter of intent and the preferred bidder shall pay only the remaining
amount as the second installment.”;
(vii) in sub-rule (8), clause (c) shall be omitted;
(viii) after sub-rule (9), the following explanation shall be inserted, namely:—
"Explanation.- For the purposes of this sub-rule, it is clarified that the time period provided under the provisos
to sub-rule (6) of rule 10 shall continue to be applicable in case of execution of mining lease pursuant to auction
of composite licence.".
7. In the said rules, after rule 18, the following rules shall be inserted, namely:-
"18A. Timelines for execution of mining lease of mineral block auctioned for composite licence. — (1) Subject
to the provisions of rule 18, a preferred bidder for grant of composite licence shall comply with the timelines
specified in Schedule VII for each milestone.
(2) In case of delay in compliance or non-compliance of the timelines for the completion of milestones specified
in the said Schedule, a committee (hereinafter referred to as the said 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 shall take a decision as to
whether delay or non-compliance is attributable to the preferred bidder or the successful bidder, as the case
may be, after giving reasonable opportunity of being heard to the such bidder.
(3) Where such delay or non-compliance is decided by the said committee to be attributable to the preferred
bidder or successful bidder, as the case may be, the State Government shall appropriate such percentage of
performance security as specified in Schedule VII.
(4) Upon appropriation of performance security, the preferred bidder or the successful bidder, as the case may
be, shall recoup or top-up the performance security within a period of two months period from the date of
issue of the order of appropriation.
(5) The completion time provided for the milestones specified in Schedule VII shall not prohibit the preferred
bidder or the successful bidder, as the case may be, from obtaining clearances, permission or the like
concurrently or earlier than the time provided, if allowed under the law relating to such clearance,
permission or the like.
(6) The decision of the said committee on appropriation or non-appropriation of performance security on delay
or non-compliance of the timelines shall not affect the liability of the preferred bidder or successful bidder,
as the case may be, for compliances of any other conditions or timelines required under the laws applicable
on him.
(7) The appropriation or non-appropriation of performance security for non-compliance of the timelines
provided for above milestones shall not affect the decision of the State Government regarding extension of
period for execution of composite licence as per the second proviso to sub-rule (3) of rule 18 and in any
case, the period provided under the provisos to sub-rule (3) of rule 18 shall not be exceeded beyond the
period of extension allowed under the said provisos.
(8) Submission of incomplete application or not providing sufficient time to the respective Government
authority for processing and taking decision on the application, may be treated by the State Government as
'delay attributable to the preferred bidder or the successful bidder' in case of non-compliance of the
timelines.
(9) If the preferred bidder or the successful bidder, as the case may be, is able to complete the milestone - 5
specified in Schedule VII within the period of seven years from the date of issue of letter of intent for
composite licence, then the amount of performance security appropriated for delay in completion of any
milestone (if any) shall be adjusted by the State Government against auction premium payable by the
successful bidder.
(10) In case of appropriation, the performance security submitted pursuant to sub-rule (1) of rule 19 shall be
appropriated in respect of milestones - 1 and 2 of Scheule VII and the performance security submitted
pursuant to sub-rule (2) of rule 19 shall be appropriated in respect of milestones - 3 to 5.
(11) The provision of this rule shall also be applicable in the cases where the letter of intent for composite licence
has been issued prior to the commencement of the Mineral (Auction) Second Amendment Rules, 2025 for
the milestones which are remaining to be complied by the preferred bidder or the successful bidder and the
timeline for the first of the milestones remaining to be complied in such case shall start from the date of
commencement of the said rules:
Provided that in such cases the period provided under the provisos to sub-rule (3) of rule 18 shall not be
exceeded beyond the period of extension allowed under the said provisos.".
8. In the said rules, after SCHEDULE V, the following schedules shall be inserted, namely:—
"SCHEDULE VI
[see rule 10A (1), (2), (3), (5), (9)]
TIMELINES FOR OPERATIONALISATION OF MINERAL BLOCK AUCTIONED FOR MINING LEASE
+-------+-----------------------------+----------------------------------------------+----------------------------------------------------------------------------------+
| S. | Activity | Timeline for completion of Milestone | Percentage of performance security to be appropriated for delay in completion of |
| No. | | | Milestone |
+-------+-----------------------------+----------------------------------------------+----------------------------------------------------------------------------------+
| (1) | (2) | (3) | (4) |
+-------+-----------------------------+----------------------------------------------+----------------------------------------------------------------------------------+
| | | Milestone -1 | |
+-------+-----------------------------+----------------------------------------------+----------------------------------------------------------------------------------+
| 1. | Approval of mining plan | Within 6 months from issue of letter | No appropriation |
| | | of intent for mining lease | |
| | | After 6 months from issue of letter of | 1% for delay of each month or a part of month |
| | | intent for mining lease | |
+-------+-----------------------------+----------------------------------------------+----------------------------------------------------------------------------------+
| | | Milestone - 2 | |
+-------+-----------------------------+----------------------------------------------+----------------------------------------------------------------------------------+
| 2. | Grant of environment | Within 18 months from the | No appropriation |
| | clearance | completion of Milestone – 1 | |
| | | After 18 months from the completion | 1% for delay of each month or a part of month |
| | | of Milestone - 1 | |
+-------+-----------------------------+----------------------------------------------+----------------------------------------------------------------------------------+
| | | Milestone - 3 | |
+-------+-----------------------------+----------------------------------------------+----------------------------------------------------------------------------------+
| 3. | Execution of mining lease | Within 12 months from the | No appropriation |
| | | completion of Milestone - 2 | |
| | | After 12 months from the completion | 1% for delay of each month or a part of month |
| | | of Milestone - 2 | |
+-------+-----------------------------+----------------------------------------------+----------------------------------------------------------------------------------+
SCHEDULE VII
[see rule 18A (1), (2), (3), (5), (9)]
TIMELINES FOR OPERATIONALISATION OF MINERAL BLOCK AUCTIONED FOR COMPOSITE LICENCE
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| S. | Activity | Timeline for completion of The Milestone | Percentage of performance security to be appropriated for delay in completion of |
| No. | | | Milestone |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| (1) | (2) | (3) | (4) |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| | | Milestone - 1 | |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| 1. | Execution of composite licence | Within 12 months from letter | No appropriation |
| | | of intent for composite licence | |
| | | After 12 months from issue of | 1% for delay of each month or a part |
| | | letter of intent for composite | of month |
| | | licence | |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| | | Milestone - 2 | |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| 2. | Completion of at least G2 level | Within 36 months from the | No appropriation |
| | of prospecting in the entire | completion of Milestone-1 | |
| | licenced area in accordance with | After 36 months from the | 1% for delay of each month or a part |
| | the Minerals (Evidence of | completion of Milestone-1 | of month |
| | Mineral Content) Rules, 2015 | | |
| | and submission of report of | | |
| | prospecting operations to Indian | | |
| | Bureau of Mines and State | | |
| | Government | | |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| | | Milestone - 3 | |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| 3. | Approval of mining plan | Within 6 months from issue of | No appropriation |
| | | letter of intent for mining | |
| | | lease | |
| | | After 6 months from issue of | 1% for delay of each month or a part |
| | | letter of intent for mining | of month |
| | | lease | |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| | | Milestone - 4 | |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| 4. | Grant of environment clearance | Within 18 months from the | No appropriation |
| | | completion of Milestone-3 | |
| | | After 18 months from the | 1% for delay of each month or a part |
| | | completion of Milestone-3 | of month |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| | | Milestone - 5 | |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
| 5. | Execution of mining lease | Within 12 months from the | No appropriation |
| | | completion of Milestone-4 | |
| | | After 12 months from the | 1% for delay of each month or a part |
| | | completion of Milestone-4 | of month". |
+-------+------------------------------------------------------------------------------------------------------------------------------------+-----------------------------------------------------+----------------------------------------------------------------------------------+
[F. No. M-VI-16/28/2023-Mines VI]
DINESH MAHUR, Jt. Secy.
Note:— The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),
vide number G.S.R. 406(E), dated the 20th May, 2015 and was last amended, vide number G.S.R. 255(E),
dated the 23rd April, 2025.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
Digitally signed by DIRECTOR OF PRINTING
Date: 2025.10.17 11:21:54 IST