The Ministry of Mines has proposed a revision to the existing auction framework for mineral blocks, seeking to lower the minimum number of technically qualified bidders required for an auction to proceed. The proposal aims to amend both the Mineral (Auction) Rules, 2015 and the Offshore Areas Mineral (Auction) Rules, 2024.

At present, the auction process requires at least three technically qualified bidders for a mineral block to move forward. If this threshold is not met, the auction stands annulled or must be reinitiated, often causing procedural delays and reduced efficiency in mineral allocation. Under the proposed amendment, the government intends to permit auctions to continue even if only two bidders qualify technically.

This modification is expected to enhance the success rate of first-time auctions, particularly for less commercially attractive mineral blocks that often struggle to attract multiple participants. The move aligns the Mines Ministry’s rules with those of the Ministry of Coal, which, since June 2020, has allowed coal block auctions to proceed with a minimum of two qualified bidders.

The Ministry of Mines has invited feedback from industry stakeholders, state governments, and the general public on the proposed changes. Comments and suggestions can be submitted until October 22. The consultation process will guide the finalisation of the amendment intended to streamline and expedite the mineral auction process across the country.