New Delhi: The Ministry of Mines has notified the Mineral (Auction) Second Amendment Rules, 2026 on March 30, to accelerate the operationalisation of mines and improve “ease of doing business in the mining sector,” according to a statement issued on Tuesday. The ministry said the amendments are the latest in a series of reforms aimed at enhancing “efficiency, transparency, and ease of doing business in the mining sector.”
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One of the key changes allows exclusion of non-feasible portions of mineral blocks where mining is blocked by forest, wildlife corridors, rivers, nallahs, habitation or infrastructure, provided such areas contain less than 25 percent of the estimated mineral resources in the block. The ministry said this will help operationalise mines that are otherwise stalled because of a small affected portion.
The amendments provide for a “Unified Mining Portal” to streamline block identification, auction preparation, clearances and monitoring of operationalisation. The portal will also facilitate automatic issuance of letter of intent on receipt of the first instalment of upfront payment and/or performance security, with the aim of reducing delays and improving transparency.
The ministry has also shortened the timeline for execution of mining lease in cases where blocks do not involve forest land. The additional two-year period beyond the initial three years from letter of intent will now apply only to blocks involving forest land, while no extra time will be allowed for blocks without forest land. The change will apply to blocks auctioned after March 30, 2026.
It has also rationalised the upfront payment timeline, requiring the second instalment to be deposited within one year from the date of issue of letter of intent for blocks auctioned after March 30, 2026.
The ministry said notified private exploration agencies will now be allowed to participate in auctions of all types of mineral blocks explored by them. Earlier, their participation was limited to blocks of critical and strategic minerals and deep-seated minerals.
The amendments also provide an exemption from auction premium for critical and strategic minerals, excluding graphite, phosphate and potash, where the estimated value of those minerals is less than 10 percent of the total estimated mineral resources in the block.
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The ministry said the changes are meant to “accelerate mineral development, facilitate timely operationalisation of mines, encourage private sector participation, and strengthen the regulatory framework governing mineral auctions in India.”