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Mineral (Auction) Rules, 2015
(1) These rules may be called the Mineral (Auction) Rules, 2015.
(2) They shall come into force on the date of their publication in the Official Gazette.
(1) In these rules, unless the context otherwise requires,--
(a) "Act" means the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957);
4[(aa) "auction premium" means the amount payable by the lessee under sub-rule (2) of rule 13;]
1[x x x x]
(c) "Mine Development and Production Agreement" means the agreement referred to in sub-rule (4) of Rule 10 or sub-rule (8) of Rule 18;
(d) "preferred bidder" means the bidder referred to in 5[clause (iii) of sub-rule (9) of rule 9 or clause (iii) of sub-rule (10) of rule 19E;]
(e) "qualified bidders" means the bidder referred to in 6[sub-rule (8) of rule 9 or sub-rule (9) of rule 19E];
(f) "reserve price" means the minimum percentage of value of mineral despatched as referred to in sub-rule (1) of Rule 8;
(g) "section" means section of the Act;
&
These rules shall apply to all minerals, except --
(i) minerals notified as minor minerals specified under clause (e) of section 3;
(ii) minerals specified in Part A of the First Schedule to the Act; and
(iii) minerals specified in Part B of the First Schedule to the Act having grade equal to or more than the threshold value as specified and notified under the Atomic Minerals Concession Rules, 2016.]
(1) Where mineral contents of an area has been established as specified in the Minerals (Evidence of Mineral Contents) Rules, 2015, mining lease shall be granted in the manner specified under Chapter II with respect to any notified minerals referred to in sub-section (3) of Section 10B or with respect to any minerals other than notified minerals referred to in sub-section (2) of Section 11.
(2) A Composite Licence with respect to an area where requirements specified in Rule 7 of the Minerals (Evidence of Mineral Contents) Rules, 2015 have been satisfied, shall be granted in the manner specified under Chapter III with respect to any notified minerals referred to in sub-section (2) of Section 10B or with respect to any minerals other than notified minerals referred to in sub-section (3) of Section 11.
1[(3) Exploration licence under section 10BA in an area in respect of any mineral specified in the Seventh Schedule of the Act shall be granted in the manner spe
(1) The State Government may initiate an auction process for grant of a mining lease with respect to an area within the State if the mineral contents in such area has been established in accordance with the provisions of the Minerals (Evidence of Mineral Contents) Rules, 2015.
(2) The State Government shall, prior to issuance of the notice inviting tender with respect to mineral auction, identify and demarcate the area where a mining lease is proposed to be granted through auction by using total station and differential global positioning system and the area so demarcated shall be classified into forests land, land owned by the State Government and land not owned by the State Government.
1[Provided that where details of the land is available in the Prime Minister Gati Shakti - National Master Plan for Multi-modal Connectivity platform or land record portal of the State Government or any other Government authority, the State Government may use such deta
(1) For the purpose of participating in the auction of mining lease, an applicant shall meet the requirements as specified in Section 5 and the terms and conditions of eligibility as specified in Schedule I.
(2) The State Government may having regard to Article 244 and the Fifth Schedule and Sixth Schedule to the Constitution, the provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (40 of 1996); and the Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007), make such amendments to Schedule I as it may deem necessary.
1[(3) The State Government shall not reserve any mine for captive purpose or any specific end use or partial specific end use in the auction.]
4[Explanation.-- This sub-rule shall be applicable in all cases of auction, notwithstanding any order or direction to the contrary, passed by any court or authority, prior to the commencement of the Mines
(1) An auction shall be conducted only through an online electronic auction platform.
(2) The State Government may utilise any online electronic auction platform which meets the minimum technical and security requirements as specified in the Guidelines for compliance to Quality requirements of e-Procurement Systems issued by the Standardisation Testing and Quality Certification Directorate, Department of Information Technology, Ministry of Communications and Information Technology, Government of India.
(1) The State Government shall specify in the tender document the minimum percentage of the value of mineral despatched, which shall be known as the "reserve price".
(2) The value of mineral despatched shall be an amount equal to the product of,--
(i) mineral despatched in a month; and
(ii) sale price of the mineral (grade-wise and State-wise) as published by Indian Bureau of Mines for such month of despatch.
(3) The bidders shall quote, as per the bidding parameter, for the purpose of payment to the State Government, a percentage of value of mineral despatched equal to or above the reserve price and the successful bidder shall pay to the State Government, an amount equal to the product of,--
(i) percentage so quoted; and
(ii) value of mineral despatched.
(4) Where an area is being auctioned for more than one mineral, the percentage of value of mineral despatched as quoted by the successful
(1) Subject to the provisions of Rule 5, the State Government shall issue a notice inviting tender, including on their website, to commence the auction process and such notice shall contain brief particulars regarding the area under auction, including,--
(a) particulars of the area identified and demarcated using total station and differential global positioning system divided into forest land, land owned by the State Government, and 7[land not owned by the State Government:
Provided that where details of the land is available in the Prime Minister Gati Shakti -- National Master Plan for Multi-modal Connectivity platform or land record portal of the State Government or any other Government authority, the State Government may use such details for classification of the land; and";]
(b) estimated mineral resources and brief particulars regarding evidence of mineral contents with respect to all minerals discovered in the area
(1) The State Government shall intimate to the Central Government the details of all the areas or mines available with the State Government for auction of mining lease, including the mining leases expired under section 8A and cases covered under subsection
(2) of section 10A, within forty-five days of the commencement of the Mineral (Auction) Second Amendment Rules, 2021.
(2) The State Government shall intimate to the Central Government regarding the following namely:-
(a) receipt of any geological report in respect of any area or mine for auction of mining lease from Geological Survey of India, Mineral Exploration Corporation Limited or any other Government or private entity, within a period of forty-five days of receiving it, along with a tentative schedule for notification of such area and conducting auction of such area under sub-sections (3) and (4) of section 10B, respectively;
(b) publication of notification under sub-section (3) of section 10B alo
(1) The State Government shall intimate to the Central Government the details of all the areas or mines available with the State Government for auction of mining lease, in respect of any mineral specified in the Part D of the First Schedule to the Act within forty-five days of the commencement of the Mineral (Auction) Amendment Rules, 2023.
(2) The State Government shall intimate to the Central Government regarding the following, namely:--
(a) receipt of any geological report in respect of any mineral specified in the Part D of the First Schedule to the Act for auction of mining lease from Geological Survey of India, Mineral Exploration Corporation Limited or any other Government or private entity, within a period of forty-five days of receiving it;
(b) termination of mining lease or lapsing of letter of intent for mining lease in respect of any mineral specified in the Part D of the First Schedule to the Act, within fifteen days from such termination or lapse;<
(1) The preferred bidder shall submit the first instalment 5[of the upfront payment as per rule 10[and furnish performance security as specified in rule 12 within forty five days] after being declared as preferred bidder:
11[Provided that in case where preferred bidder is declared before the commencement of the Mineral (Auction) Second Amendment Rules, 2025, such preferred bidder shall furnish performance security within six months of the commencement of the said rules and in case of failure to furnish the performance security within the said period, the letter of intent shall be invalidated leading to annulment of the entire process of auction.]]
6[(1A) In case the preferred bidder fails to submit the first instalment of the upfront amount within the period or extended period specified in sub-rule (1), the State Government shall,--
(a) forfeit the bid security of the preferred bidder; and
(b) offer the bi
(1) Subject to the provisions of rule 10, a preferred bidder for grant of mining lease shall comply with the timelines specified in Schedule VI for each milestone.
(2) In case of delay in compliance or non-compliance of the timelines for the completion of milestones specified in the said Schedule, a committee (hereinafter referred to as the said 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 shall take a decision as to whether delay or non-compliance is attributable to the preferred bidder or the successful bidder, as the case may be, after giving reasonable opportunity of being heard to such bidder.
(3) Where such delay or non-compliance is decided by the said committee to be attributable to the preferred bidder or
(1) An amount equal to 0.50% of the value of estimated resources shall be the upfront payment.
3[Provided that for the preferred bidder selected pursuant the notice inviting tender issued after the date of commencement of the Mineral (Auction) Amendment Rules, 2024, the amount of upfront payment shall not exceed five hundred crore rupees.]
(2) The upfront payment shall be payable to the State Government in three instalments of 2[twenty per cent.; twenty per cent.; and sixty per cent.;] as specified in the tender document and shall be 1[adjusted in full at the earliest against the amount to be paid under sub-rule (3) of rule 8 on] commencement of production of mineral as specified in the tender document.
(1) The 1[preferred ] bidder shall provide a performance security of an amount of 0.50% of the value of estimated resources and the performance security shall be adjusted every five years so that it continues to correspond to 0.50% of the reassessed value of estimated resources. 2[including the value of any newly discovered mineral that may be included in the mining lease deed on its discovery]
3[Provided that for the preferred bidder selected pursuant the notice inviting tender issued after the date of commencement of the Mineral (Auction) Amendment Rules, 2024, the amount of performance security shall not exceed five hundred crore rupees.]
(2) The performance security provided through bank guarantee in the format as specified in Schedule III or through security deposit, may be invoked as per the provisions of--
(i) the Mine Development and Production Agreement; and
(ii) the Mining Lease Deed.<
(1) The lessee shall pay royalties and dead rent to the State Government as specified in the Act and the rules made thereunder.
(2) The lessee shall pay the applicable amount quoted under Rule 8 to the State Government on a monthly basis.
1[Provided that in case of auction of mining lease in respect of an area having existence of mineral contents established in accordance with rule 5 of the Minerals (Evidence of Mineral Contents) Rules, 2015, the lessee shall pay only fifty per cent. of the amount quoted under rule 8, for the quantity of mineral produced and dispatched earlier than 2[five years from the date of issue of letter of intent for grant of mining lease:
Provided further that in case of auction of composite licence, the lessee shall pay only fifty per cent. of the amount quoted under rule 8, for the quantity of mineral produced and dispatched earlier than seven years from the date of issue of letter of intent for grant of composi
The State Government shall charge simple interest at the rate of 1[twelve] per cent. per annum on any payment due to State Government under these rules the payment of which is delayed beyond 2[x x x x] the due date thereof.
The time period for compliance of rules 10 to 14 shall be as specified in the tender document.
(1) The State Government may initiate an auction process for grant of a Composite Licence with respect to an area within the State in accordance with the provisions of the Act and this Chapter subject to the condition that the requirements of Rule 7 of the Minerals (Evidence of Mineral Contents) Rules, 2015 have been satisfied:
2[x x x x]
(2) The State Government shall, prior to issuance of the notice inviting tender with respect to auction, identify and demarcate the area where a Composite Licence is proposed to be granted through auction using total station and differential global positioning system 1[, or global positioning system] and land not owned by the State Government.
(1) The auction process as specified in Rules 6 to 9 shall be applicable for conduct of auction for grant of a Composite Licence subject to the following, namely:--
(a) the State Government shall not make any reservation on the basis of end use;
(b) the State Government shall subject to compliance of Rule 16, issue a notice inviting tender, including on their website, to commence the auction process and such notice shall contain brief particulars regarding the area under auction, including,--
(i) particulars of the area identified and demarcated using total station and differential global positioning system 1[, or global positioning system]; and
(ii) estimated mineral resources with respect to all minerals discovered in the area and brief particulars regarding satisfaction of the requirements specified in Rule 7 of the Minerals (Evidence of Mineral Contents) Rules, 2015;
(c) the tender document i
(1) The State Government shall intimate to the Central Government the details of all the areas or mines available with the State Government for auction of composite licence, including the prospecting licence expired under section 7 and cases covered under sub-section (2) of section 10A, within forty-five days of the commencement of the Mineral (Auction) Second Amendment Rules, 2021.
(2) The State Government shall intimate to the Central Government regarding the following namely:--
(i) receipt of any geological report in respect of any area or mine for auction of composite licence from the Geological Survey of India, Mineral Exploration Corporation Limited or any other Government or private entity, within a period of forth-five days of receiving it, along with a tentative schedule for notification of such area and conducting auction of such area under sub-sections (4) and (5) of section 11, respectively;
(ii) publication of notification under sub-section (4) of s
(1) The State Government shall intimate to the Central Government the details of all the areas or mines available with the State Government for auction of composite licence, in respect of any mineral specified in the Part D of the First Schedule to the Act within a period of forty-five days of the commencement of the Mineral (Auction) Amendment Rules, 2023.
(2) The State Government shall intimate to the Central Government regarding the following, namely:--
(a) receipt of any geological report in respect of any mineral specified in the Part D of the First Schedule to the Act for auction of composite licence from Geological Survey of India, Mineral Exploration Corporation Limited or any other Government or private entity, within a period of forty-five days of receiving it;
(b) termination of composite licence or lapsing of letter of intent for composite licence in respect of any mineral specified in the Part D of the First Schedule to the Act, within fifteen days from such te
(1) Upon completion of the auction process, the preferred bidder shall submit a performance security in the manner specified in sub-rule (1) of Rule 19 2[11[within forty-five days after] being declared as preferred bidder]and upon receipt of such performance security, the State Government shall issue a letter of intent 3[to the preferred bidder 12[within thirty days of] receipt of performance security:
Provided that the State Government may, for the reasons to be recorded in writing, extend the period of fifteen days for submission of performance security by further fifteen days.]
4[(1A) In case the preferred bidder fails to submit the performance security within the period or extended period specified in sub-rule (1), the State Government shall,--
(a) forfeit the bid security of the preferred bidder; and
(b) offer the bidder who had submitted second-highest price offer in the second round of au
(1) Subject to the provisions of rule 18, a preferred bidder for grant of composite licence shall comply with the timelines specified in Schedule VII for each milestone.
(2) In case of delay in compliance or non-compliance of the timelines for the completion of milestones specified in the said Schedule, a committee (hereinafter referred to as the said 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 shall take a decision as to whether delay or non-compliance is attributable to the preferred bidder or the successful bidder, as the case may be, after giving reasonable opportunity of being heard to the such bidder.
(3) Where such delay or non-compliance is decided by the said committee to be attributable to the preferred
(1) An amount of 0.25% of the value of estimated resources shall be payable by the preferred bidder as performance security prior to the issuance of the Composite Licence.
3[Provided that for the mineral block having such type of deposit as specified in serial numbers I, II and III of Part III of Schedule I to the Minerals (Evidence of Mineral Contents) Rules, 2015 (except those covered under Schedule II of the said rules), whose estimated quantity of mineral resources is not possible to be assessed for calculating the value of estimated resources under clause (m) of sub-rule (1) of rule 2, but the mining potentiality of the block has been identified based on the existing geoscience data, the performance security shall be one crore and fifty lakh rupees.]
6[Provided further that for the preferred bidder selected pursuant the notice inviting tender issued after the date of commencement of the Mineral (Auction) Amendment Rules, 2024, the amou
(1) The State Government may initiate auction process for grant of exploration licence with respect to an area within the State, in respect of the minerals specified in Seventh Schedule of the Act, in accordance with the provisions of the Act and this Chapter.
(2) Any person intending to obtain exploration licence in respect of an area may submit a proposal to the State Government in the format specified in Schedule V along with available geoscience data for notification of the area for auction to grant an exploration licence.
(3) In order to identify a block for auction for grant of exploration licence, including in any area proposed by any person under the sub-rule (2), the State Government shall constitute a committee consisting of the following members, namely:--
(a) Principal Secretary or Secretary in the Mining and Geology Department of State Government (by whatever name called) - Chairman;
(b) Deputy Director General, State Unit of Geological Surve
(1) For the purpose of participating in the auction of exploration licence, an applicant shall meet the requirements as specified in section 5 and the terms and conditions of eligibility as specified in Schedule I.
(2) The eligibility for participating in the auction shall be determined as per the terms and conditions of eligibility for participating in the auction and the Successful Bidder shall be decided solely on the basis of financial bids submitted by the eligible bidders.
(3) A bidder shall submit only one bid in an auction of a mineral block and no affiliate of a bidder shall submit a bid in the same auction where such bidder has submitted bid.
(4) In case a bidder submits more than one bid in an auction of a mineral block or an affiliate of a bidder submits bid in same auction where such bidder has submitted bid, the bids submitted by the bidder and its affiliate shall be rejected.
Explanation.-- For the purposes of this rule,--
(i
(1) An auction shall be conducted only through an online electronic auction platform.
(2) The State Government may utilise any online electronic auction platform which meets the minimum technical and security requirements as specified in the Guidelines for compliance to Quality requirements of e-Procurement Systems issued by the Standardisation Testing and Quality Certification Directorate, Department of Information Technology, Ministry of Communications and Information Technology, Government of India.]
(1) The State Government shall specify in the tender document the maximum percentage share (known as "ceiling price") of the auction premium that shall be payable by the future lessee of mining lease which shall be auctioned pursuant to the prospecting operations undertaken under the exploration licence being auctioned:
Provided that the ceiling price shall not be less than twenty-five per cent.
(2) The bidders shall quote, for the purpose of receiving payment from the State Government, a percentage share of the auction premium payable by such future lessee equal to or below the ceiling price and the bidder quoting the minimum percentage in accordance with the bidding process specified in rule 19E shall be the preferred bidder.]
(1) Subject to the provisions of rule 19A, the State Government shall issue a notice inviting tender, including on their website, to commence the auction process and such notice shall contain brief particulars regarding the area under auction, including,--
(a) particulars of the area identified and demarcated, specifying its boundary latitude and longitude coordinates; and
(b) available geoscience data.
(2) The tender document issued by the State Government shall contain,--
(a) particulars of the area identified and demarcated, specifying its boundary latitude and longitude coordinates;and
(b) information on available geosciences data.
(3) The bidders shall be provided a fixed period, as notified by the State Government, to study the tender document and such reports and the bidding process shall commence only on expiry of such period.
(4) The auction shall be a descending reverse online electronic auction and shall comprise of attempt
(1) The State Government shall intimate to the Central Government regarding the following, namely:--
(a) identification and recommendation of any area for auction of exploration licence by the committee under rule 19A within a period of fifteen days of receiving it;
(b) decision of the State Government on the recommendation of the committee under rule 19A within a period of fifteen days of such decision;
(c) publication of notice under sub-section (4) of section 10BA along with its copy, within fifteen days of publication of such notice;
(d) issue of notice inviting tender for auction for mining lease under rule 19E along with its copy, within fifteen days of issue of such notice;
(e) outcome of any auction for exploration licence, within fifteen days of completion of auction; and
(f) termination, lapse or surrender of exploration licence or terminating or lapse of letter of intent for exploration licence, within fifteen days from such termi
(1) The preferred bidder shall submit a performance security in the manner specified in sub-rule (1) of rule 19H within fifteen days after being declared as preferred bidder, and upon receipt of such performance security, the State Government shall issue a letter of intent to the preferred bidder within fifteen days of receipt of performance security:
Provided that the State Government may, for the reasons to be recorded in writing, extend the period of fifteen days for submission of performance security by further fifteen days.
(2) In case the preferred bidder fails to submit the performance security within the period or extended period specified in sub-rule (1), the State Government shall,--
(a) forfeit the bid security of the preferred bidder; and
(b) offer the bidder who had submitted second-lowest price offer in the second round of auction to meet the lowest final price offer and if the said bidder agree to the said offer in writing and submit the pe
(1) The amount of performance security shall be as follows, namely:--
(a) one crore rupees for area less than or equal to five hundred square kilometers; and
(b) two crore rupee for area more than five hundred square kilometers but less than or equal to one thousand square kilometers.
(2) The performance security shall be provided through bank guarantee in the format as specified in Schedule IV or through security deposit, which may be appropriated in the following events, namely:--
(a) non-adherence to scheme of reconnaissance or prospecting, as the case may be;
(b) disclosure of exploration data to an unauthorized entity;
(c) non-disclosure of entire exploration data, reports or any other information related to exploration to State Government or any other Government organisation authorised to receive such information under the law;
(d) serious discrepancy in exploration data, reports or any other information related to exploration t
(1) The State Government shall pay by electronic transfer to the exploration licencee the percentage share quoted by him in the auction of exploration licence out of the auction premium deposited in a month by the future lessee who has obtained mining lease in auction pursuant to the prospecting operations undertaken by the exploration licencee, within thirty days of deposit of auction premium.
(2) The share of the exploration licencee shall be payable for entire period of fifty years of the mining lease or till exhaustion of resources, whichever is earlier.
(3) In case of termination, lapse or surrender of mining lease, share of the exploration licencee shall be payable out of the auction premium deposited by the subsequent lessee of the area for the remaining period out of fifty years from the date of commencement of the first lease for the area or till exhaustion of resources, whichever is earlier.
(4) The percentage share quoted by the exploration licencee s
(1) The manner and terms and conditions for auction of a mining lease specified in Chapter II of these rules shall be applicable for auction of mining lease of a block identified pursuant to the prospecting operations undertaken under an exploration licence, subject to the conditions specified in this rule.
(2) The State Government shall initiate the auction process for grant of mining lease under section 10B read with section 11 within six months from the date of receipt of the geological report from the exploration licencee in respect of the area where existence of mineral content is established as specified in rule 5 of the Mineral (Evidence of Mineral Contents) Rules, 2015 and shall select the preferred bidder for grant of such mining leases within one year from the date of receipt of the geological report:
Provided that in respect of any mineral specified in the Part D of the First Schedule to the Act, the auction process for grant of mining lease shall be c
Any clerical or arithmetical mistake in any order passed by the Government or any authority or officer under these rules and any error arising therein due to accidental slip or omission, may be corrected by the Government, the concerned authority or officer, as the case may be:
Provided that no rectification order prejudicial to any person shall be passed unless such person has been given a reasonable opportunity of being heard.
(1) Notwithstanding anything contained in these rules--
(a) if the holder of a Composite Licence or mining lease discovers any mineral specified in Part B of the First Schedule to the Act and not specified in such licence or lease, in the area granted under such licence or lease, the discovery of such mineral shall be reported to the Director, Atomic Minerals Directorate for Exploration and Research, Hyderabad within sixty days from the date of discovery of such mineral;
1[(b) no atomic mineral as specified in Part B of the First Schedule where the grade of atomic mineral is equal to or above the notified threshold value shall be included in the mining lease granted in respect of minerals other than such atomic minerals;]
(c) the quantities of any mineral specified in Part B of the First Schedule to the Act recovered incidental to such prospecting or mining operations shall be collected and stacked separately and a report to that eff
The holder of a mining lease shall complete detailed exploration (G1 level exploration) and prepare a detailed feasibility study report conforming to Part IV and V of the Mineral (Evidence of Mineral Contents) Rules, 2015 over the entire area under the mining lease, within a period of five years from the date of commencement of such mining lease.
When the day of completion of any requirement under these rules is falling due on a public holiday, the day of completion shall be deemed to be due on the next successive working day.
Explanation.-- The expression "public holiday"includes Saturday, Sunday and any other day declared to be a public holiday by the Central Government or the State Government, as the case may be.]
(1) The manner and terms and conditions for auction of a mining lease or composite licence specified in Chapter II and Chapter III, respectively of these rules shall be applicable for auction of a block identified pursuant to the prospecting operations undertaken by an agency covered under proviso to sub-section of (1) of section 4, subject to the conditions specified in this rule.
(2) An agency covered under proviso to sub-section of (1) of section 4 who has undertaken exploration of a mineral specified in the Part D of the First Schedule of the Act or the Seventh Schedule of the Act shall not be prohibited from participating in the auction for the mining lease or composite licence auctioned pursuant to the prospecting operations undertaken by such agency for such mineral subject to fulfillment of the eligibility conditions under rule 6.
(3) The tender document for auction of mining lease or composite licence shall, in addition to the details specified in sub-rule (2)
1[SCHEDULE I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Terms and conditions of eligibility | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[See rules 6(1) and 6(2)] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. The following net worth requirements shall be applicable for an auction of mining lease depending on the Value of Estimated Resources, namely:– S.SCHEDULE II1[x x x x] S.SCHEDULE III
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