**Executive Summary**
This document is the answer to Unstarred Question No. 485 in Lok Sabha, answered on December 3, 2025. It addresses amendments to the Mineral (Auction) Rules, 2015, particularly concerning timelines for operationalizing auctioned mineral blocks. The amendments aim to expedite mineral production and industrial development, especially in the Chhindwara district of Madhya Pradesh.
**Key Points / Main Content**
* **Amendment Overview:**
* The Ministry of Mines amended the Mineral (Auction) Rules, 2015, effective from October 17, 2025.
* The amendment introduces intermediary timelines to expedite the operationalization of auctioned mineral blocks.
* These timelines apply to all auctioned blocks, including those in the Chhindwara district of Madhya Pradesh.
* **Timelines and Monitoring:**
* Key milestones and corresponding timelines for mining leases and composite license blocks are specified in Annexure I.
* State Governments are required to form a committee to determine if delays are attributable to the preferred bidder. This committee includes representatives from various state departments.
* **Incentives and Penalties:**
* A penalty of 1% of the performance security per month is applicable for delays attributable to the bidder. The appropriated amount can be adjusted against the auction premium if the final milestone is met within the overall timeframe.
* A reduction of 5% in the second installment of the upfront payment is applicable for each month of delay by the State Government in issuing the letter of intent.
* An incentive provides that the lessee pays only 50% of the auction premium for the mineral produced within 5 years from the date of the letter of intent for a mining lease, or within 7 years for a composite licence.
* **Impact and Objectives:**
* The timelines aim to monitor the progress of auctioned mines from letter of intent to mining lease execution.
* The objective is to ensure faster operationalization of mines, increasing mineral production, local employment, and industrial development, particularly in Chhindwara district.
* **Coal Block Allotments:**
* Nine coal blocks have been allotted in the Singrauli district under commercial auctions from June 2020 onwards (details in Annexure II).
* **State Government Authority:**
* As per Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957, State Governments are empowered to make rules for regulating the grant of quarry leases, mining leases, or other mineral concessions for minor minerals.
**Impact Analysis**
**State Governments**
* **Impact:** Required to establish committees to assess delays in mine operationalization and empowered to regulate minor mineral concessions.
* **Action Required:** Form committees as per the amended rules and ensure adherence to established timelines.
**Bidders (Mine Operators/Lessees)**
* **Impact:** Subject to new timelines, penalties for delays, and incentives for early production.
* **Action Required:** Adhere to the new timelines to avoid penalties and take advantage of incentives.
**Chhindwara District (Madhya Pradesh)**
* **Impact:** Expect increased mineral production, local employment, and industrial development due to faster operationalization of mines.
* **Action Required:** N/A
Key Entities Referenced
Chhindwara district, Madhya Pradesh: A specific location whose mineral blocks and development are a focus of the inquiry.
Mineral (Auction) Rules, 2015: The primary rules amended in this document, concerning mineral auctions and mining operations.
Ministry of Mines: The Government of India ministry responsible for the administration and regulation of mines.
Lok Sabha: The lower house of the Parliament of India, where the unstarred question was raised.
Mines and Minerals (Development and Regulation) Act, 1957: A key Indian law regarding mining and mineral development, particularly Section 15 which empowers State Governments.
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. Milestone Timeline
No.
1 Approval of mining plan Within 6 months from issue of letter of intent for
mining lease
2 Grant of environment Within 18 months from the completion of Milestone
clearance – 1
3 Execution of mining lease Within 12 months from the completion of Milestone
- 2
For Composite Licence:
Sl. Milestone Timeline
No.
1 Execution of composite Within 12 months from letter of intent for composite
licence licence
2 Completion of at least G2 level Within 36 months from the completion of
of prospecting in the entire Milestone-1
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
3 Approval of mining plan Within 6 months from issue of letter of intent for
mining lease
4 Grant of environment Within 18 months from the completion of
clearance Milestone-3
5 Execution of mining lease Within 12 months from the completion of
Milestone-4Annexure-II
Referred in reply to part (e) & (f) of Lok Sabha Unstarred Question No. 485
Sl. Mine Successful Bidder CMSP Act / Date of
No. MMDR Act allocation
1 Dhirauli Stratatech Mineral Resources MMDR Act 03.03.2021
Private Limited
2 Bandha EMIL Mines and Mineral MMDR Act 03.03.2021
Resources Limited
3 Gondbhaera MP Natural Resources Private MMDR Act 10.10.2022
Ujheni East Limited
4 Bandha North Jaiprakash Power Ventures MMDR Act 12.12.2022
Limited
5 Marki Barka Birla Corporation Limited CMSP Act 17.01.2023
6 Gondbahera MP Natural Resources Private MMDR Act 08.06.2023
Ujheni Limited
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