Mineral Auction Rules May Change: Ministry of Mines Seeks to Cut Minimum Bidders from Three to Two

The Ministry of Mines has announced a proposed amendment to the mineral auction rules, allowing auctions to proceed with 2 technically qualified bidders instead of 3. This step is intended to enhance the success rate of auctions in the first attempt and reduce delays in allocation.

Key Changes in Mineral Auction Rules

Under current regulations, mineral block auctions move forward only if at least three bidders meet technical qualification criteria. If this threshold is not achieved, the auction is annulled, and a second attempt may be organised by the central or state government. The proposed amendment will apply to the Mineral (Auction) Rules, 2015, and the Offshore Areas Mineral (Auction) Rules, 2024. 

Allowing auctions to proceed with two bidders is expected to streamline the process and reduce the frequency of annulled rounds.

Alignment with Coal Sector Norms

This proposed change mirrors the rules already in place for coal block auctions managed by the Ministry of Coal since June 2020, which permit auctions with only two technically qualified bidders. The ministry stated that applying a similar requirement to other mineral blocks is crucial to improving the success rate of auctions on the first attempt, thus minimising administrative delays.

Read More: ₹1,500 Crore Push: Ministry of Mines Unveils Incentive Scheme for Critical Mineral Recycling!

Stakeholder Consultation Period

The Ministry of Mines has opened a public consultation inviting comments and suggestions from industry stakeholders, state governments, and the general public until October 22, 2025. The feedback collected will guide the finalisation of the amendment, ensuring that the process remains transparent and inclusive.

Conclusion

The proposed amendment by the Ministry of Mines to reduce the bidder threshold from three to two aims to streamline mineral block auctions, align practices with coal sector norms, and improve first attempt success rates. Public consultation is ongoing until October 22, 2025, ahead of finalising the changes.

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