INSUBCONTINENT EXCLUSIVE:
Amendment rules were framed after extensive consultations with states, stakeholders, and public.The government on Thursday said that
amendment in mineral auction rules will encourage competition that will ensure more participation in sale of blocks.The Ministry of Mines
has notified the Minerals (Evidence of Mineral Contents) Second Amendment Rules, 2021, and the Mineral (Auction) Fourth Amendment Rules,
2021 to amend the Minerals (Evidence of Mineral Contents) Rules, 2015 (MEMC Rules) and the Mineral (Auction) Rules, 2015 (Auction Rules),
respectively, the mines ministry said in a statement.The amendment rules have been framed after extensive consultations with the states,
industry associations, miners, other stakeholders and general public.Amendment in the MEMC Rules will enable any person, who is intending to
participate in auction, to propose suitable blocks for auction for composite licence where mineral potentiality of the blocks has been
identified based on the available geoscience data, the ministry said.A committee constituted by any state will assess the mineral
potentiality of the blocks so proposed and recommend the mine for auction, it said.Further, amendment in the 'Auction Rules' provide that in
case the blocks proposed by any person are notified for auction, the said person would be provided incentive of depositing only half of the
bid security amount in auction of the blocks proposed by him, the statement said."These amendments would encourage more participation in
auction and promote competition," the ministry said
This will facilitate state governments in identifying more blocks for auction of composite licence.The Minerals (Evidence of Mineral
Contents) Rules, 2015 have been recently amended in June, 2021, inter alia, to provide for auction to grant a composite licence in respect
of areas where at least Reconnaissance Survey (G4) level has been completed or where mineral potentiality of the block has been identified
based on the available geoscience data but resources are yet to be established, the government said.These amendments were aimed at
identifying more mineral blocks for auction and thereby increasing pace of exploration and production resulting in improving the
availability of minerals in the country and increase employment in the sector, it added.Simultaneously, the Mineral (Auction) Rules, 2015
were amended, inter alia, to prescribe bid security, performance security and other eligibility conditions to enable auction of such blocks
for composite licence, as per the statement.The present amendment in the rules will supplement the recent policy reforms taken in the
mineral sector and facilitate auction of more blocks, thereby increasing production and mineral supply in the country, the statement said.
