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Core Purpose

The Central Government hereby makes the Mineral (Auction) Second Amendment Rules, 2026, to further amend the Mineral (Auction) Rules, 2015, in exercise of powers conferred by section 13 of the Mines and Minerals (Development and Regulation) Act, 1957.

Detailed Summary

The Ministry of Mines, on March 30, 2026, issued Notification G.S.R. 223(E), introducing the Mineral (Auction) Second Amendment Rules, 2026, which came into force on their publication in the Official Gazette. These rules amend the Mineral (Auction) Rules, 2015, which were originally published as G.S.R. 406(E) on May 20, 2015, and last amended by G.S.R. 71(E) on January 29, 2026. Key amendments include: in rule 8(4), for blocks auctioned after these new rules, specified minerals in Part D of the First Schedule of the Act (excluding Graphite, Phosphate, and Potash) are considered included minerals under section 15B, and no auction premium is payable if their estimated resources value is less than ten per cent of the total estimated resources value in the block. Rules 10(2), 18(1), 18(6), and 19G(1) are amended to provide for automatic issuance of the letter of intent through an online unified mining portal by the State Government on a date specified by the Central Government, upon receipt of required payments and performance security, rendering certain sub-rules ineffective. A new sub-rule 10(2B) allows State Governments to permit preferred bidders to exclude up to twenty-five per cent of total estimated mineral resources at a block edge if mining is unfeasible due to environmental or infrastructural issues. Rule 10(3)(b) and 18(8)(b) are modified to require the second installment of upfront payment within one year from the letter of intent issue date for tenders issued after these rules. Rule 10(6) now permits a further two-year extension for Mining Lease Deed execution if a committee under rule 10A(2) is satisfied and all three upfront installments are paid, specifically applying this to blocks with forest land for tenders issued after these rules; it also clarifies that security and payments shall be returned within ninety days if an auction is annulled for reasons not attributable to the bidder. Rule 18(3) allows a six-month extension for prospecting licence deed execution under similar committee satisfaction. Rule 18(9) omits the words "being sixty per cent.", and Rule 24 sees the omission of specific schedule references in sub-rule (2) and the insertion of "or composite licence" in sub-rule (6). A new rule 25 establishes an online unified mining portal, to be prepared by the Central Government in consultation with State Governments, through which all provisions of these rules shall be carried out from specified dates, with the Central Government having the authority to specify different dates for different modules of the portal. The notification was signed by SHAKIL ALAM, Economic Advisor.

Full Text

D.L.- 33004/99 REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-31032026-271424 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 204] NEW DELHI, MONDAY, MARCH 30, 2026/CHAITRA 9, 1948 2307 GI/2026 MINISTRY OF MINES NOTIFICATION New Delhi, the 30th March, 2026. G.S.R. 223(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. (1) These rules may be called the Mineral (Auction) Second Amendment Rules, 2026. (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 8, in sub-rule (4), the following proviso shall be inserted, namely:— "Provided that in case of mineral blocks auctioned after the commencement of the Mineral (Auction) Second Amendment Rules, 2026, any mineral specified in Part D of the First Schedule of the Act (except Graphite, Phosphate and Potash) shall be considered as included mineral under section 15B and auction premium shall not be payable in respect of such mineral in accordance with the Eighth Schedule of the Act, if the value of estimated resources of all such minerals is less than ten per cent. as compared to the total value of estimated resources of all the minerals in the block.". 3. In the said rules, in rule 10,— (a) in sub-rule (2), the following proviso shall be inserted, namely:- "Provided that on and from the date specified by the Central Government, upon the receipt of such payment and performance security, the letter of intent shall automatically be issued through the online unified mining portal on behalf of the State Government and thereafter sub-rule (2A) shall have no effect."; (b) after sub-rule (2A), the following sub-rules shall be inserted, namely:- "(2B) The State Government may allow the preferred bidder for exclusion of a portion at an edge of the block where the estimated quantity of mineral resources in such portion is less than twenty-five per cent. of the total estimated quantity of mineral resources in the block for the reason that the mining in such portion is not feasible due to issues such as forest, wildlife corridor, river, nallah, habitation, or infrastructure and the like."; (c) in sub-rule (3), in clause (b), the following proviso shall be inserted, namely:— "Provided that where a notice inviting tender is issued after the commencement of the Mineral (Auction) Second Amendment Rules, 2026, the payment of the second instalment of the upfront payment shall be made within a period of one year from the date of issue of the letter of intent"; (d) in sub-rule (6), — (i) for the second proviso, the following provisos shall be substituted, namely:— "Provided further that a further period of two years for execution of the Mining Lease Deed shall be allowed if the committee made under sub-rule (2) of rule 10A, 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. Provided also that where a notice inviting tender is issued after the commencement of the Mineral (Auction) Second Amendment Rules, 2026, the second proviso shall only be applicable for the blocks containing forest land in part or full."; (ii) in the Explanation, after the words "shall be forfeited", the words ", and in case of annulment of auction due to mining in the block is made impossible for the reasons not attributable to the preferred bidder or the successful bidder as decided by such committee, such security and payments shall be returned to such bidder preferably within a period of ninety days of such annulment” shall be inserted. 4. In the said rules, in rule 18,— (a) in sub-rule (1), the following proviso shall be inserted, namely:- "Provided that on and from the date specified by the Central Government, upon the receipt of such performance security, the letter of intent shall automatically be issued through the online unified mining portal on behalf of the State Government and thereafter, sub-rule (1B) shall have no effect."; (b) in sub-rule (3), for the second proviso, the following proviso shall be substituted, namely:— "Provided further that a further period of six months for execution of the prospecting licence deed shall be allowed if the committee made under sub-rule (2) of rule 18A 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."; (c) in sub-rule (6), after the third proviso, the following proviso shall be inserted, namely:- "Provided also that on and from the date specified by the Central Government, upon the receipt of the first instalment of upfront amount and enhanced performance security as specified in clause (b), the letter of intent shall automatically be issued through the online unified mining portal on behalf of the State Government and thereafter, sub-rule (6A) shall have no effect."; (d) in sub-rule (8), for clause (b),the following clause shall be substituted, namely:- "(b) pays the second instalments of the upfront payment: Provided that where a notice inviting tender is issued after the commencement of the Mineral (Auction) Second Amendment Rules, 2026, the payment of the second instalment of the upfront payment shall be made within a period of one year from the date of issue of letter of intent for mining lease"; (e) in sub-rule (9), the words "being sixty per cent." shall be omitted. 5. In the said rules, in rule 19G, in sub-rule (1), the following proviso shall be inserted, namely:— "Provided that on and from the date specified by the Central Government, upon the receipt of performance security, the letter of intent shall automatically be issued through the online unified mining portal on behalf of the State Government.". 6. In the said rules, in rule 24,- (i) in sub-rule (2), the words "specified in the Part D of the First Schedule of the Act or the Seventh Schedule of the Act" shall be omitted; (ii) in sub-rule (6), after the words, “mining lease", the words "or composite licence" shall be inserted. 7. In the said rules, after rule 24, the following rule shall be inserted, namely:- "25. Unified mining portal: (1) The Central Government, in consultation with the State Government, shall prepare an online unified mining portal to carry out various purposes of these rules for implementation and compliance under these rules. (2) On and from the date specified by the Central Government, the provisions of these rules shall be carried out by the Central Government or State Government only through the said portal: Provided that the Central Government may specify different dates for implementation of different modules of such portal.". [F. No. M.VI-16/6/2026-Mines VI] SHAKIL ALAM, Economic Advisor 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. 71(E), dated the 29th January, 2026. 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.

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