Centre Proposes Faster Mining Lease Execution

29 Jan 2026 CW Team

The Ministry of Mines has proposed regulatory changes to accelerate mineral production from auctioned blocks by allowing partial execution of mining leases.

Under the draft Mineral (Auction) Second Amendment Rules, 2026, companies may be permitted to begin mining operations in non-forest areas of a block even if forest clearances for other portions are still pending. The move is expected to enable states to grant approvals more quickly and reduce delays in the commencement of production.

According to officials, the forest portion must be located at the edge of the block and should account for less than 20 per cent of the estimated mineral resources. The proposal also allows separate execution of leases for forest and non-forest areas without reducing the upfront payment amount.

In addition, the Ministry plans to shorten the time between issuing the letter of intent and executing the mining lease. A unified online mining portal is also proposed to automate processes such as auctions, payments and lease execution.

These measures are aimed at boosting mineral output, improving operational efficiency and attracting greater investment into India’s mining sector, strengthening the country’s resource development framework.

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