Centre notified mineral auction rules to cap upfront payments
Mineral auction rules which cap the upfront payment at Rs 500 crore while also baring affiliates from bidding for the same block. Bids placed by affiliates of companies who have explored a block being auctioned will be made public to ensure a level playing field for other bidders.
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View Details»According to the Mineral (Auction) Amendment Rules, 2024, a bidder shall submit only one bid in an auction of a mineral block and no affiliate of a bidder shall submit another one in the same auction. An affiliate has been defined as a person (or company) controlled by another bidder in the auction.
These rules also make way for granting exploration licenses (EL) by state government. EL can also be bid out by the state and centre. Performance security for an exploration license has been fixed at Rs 2 crore for area more than 500 square kilometres (sq km) but less than or equal to 1000 sq km.
The State Government shall specify the maximum percentage share (known as ceiling price) of the auction premium that shall be payable by the future lessee of mining lease, the rules said. This amount will be paid after the prospecting operations undertaken under the exploration licence being auctioned.
