The mineral auction rules are amended by the central govt. of India, through a notification of the Mineral (Auction) Amendment Rules, 2024. These changes are meant to improve transparency, promote competition and boost state revenue from mineral auctions. The amendments introduce an upper limit of Rs 500 crore on the one-time upfront payment made by the successful bidder for a mineral block. Earlier, there was no cap which led to aggressive upfront commitments. The cap provides flexibility to bidders.
The new norms bar corporate affiliates from bidding for the same mineral block. The rules define an affiliate as an entity controlled by another bidder for that specific auction. Any affiliate bids made will also be publicly disclosed to ensure level playing field. The amended rules enable state governments to directly grant exploration licenses (EL) via auctions. The license holder can explore mineral reserves before potential mining leases. This boosts upfront investment in comprehensive mineral exploration.