The Ministry of Mines has issued the draft Mineral (Auction) Second Amendment Rules, 2026. It is proposing partial execution of mining and composite leases to expedite production from auctioned blocks.
Under the draft framework, states may allow execution of leases for the non-forest portion of a mineral block while statutory clearances for the forest portion are pending, enabling mining activity to begin in the “good-to-go” areas. As per the draft rules, a state government may permit a preferred bidder to exclude the portion of the block falling in forest land, subject to conditions such as the forest portion being located at the edge of the block and containing less than 20 per cent of the total estimated mineral resources. The mine development and production agreement is proposed to be executed in two parts, first for the non-forest portion and subsequently for the full block area after permits and no-objection clearances are obtained for the remaining portion. The draft also states that there will be no reduction in upfront payment in case of part-lease execution. In addition, the draft proposes reducing the time between issuance of the letter of intent and execution of the mining or composite lease. The ministry has also proposed setting up a unified online mining portal to streamline auction and lease execution processes, including automated issuance of the letter of intent upon completion of required payments.