Government of India Amends Mineral (Auction) Rules, 2015

The Ministry of Mines, Government of India, has issued an important amendment to the Mineral (Auction) Rules, 2015, through the Mineral (Auction) Amendment Rules, 2025. This amendment was officially published in the Gazette of India on April 23, 2025.

Key Changes Introduced:

Expanded Scope for Subsidiary Companies:

Previously, the rules permitted the net worth consideration of subsidiary companies only if the holding company was incorporated in India.
The amendment now clearly states that if the applicant is a subsidiary company, the net worth of its holding company may be considered, regardless of whether the holding company is incorporated in India or abroad.

Purpose of the Amendment:

The primary intent behind this regulatory update is to encourage greater participation in mineral auctions by allowing companies with international parent companies to leverage their global financial standing. This move potentially expands the pool of bidders and enhances competition in mineral auctions.

Implications for Stakeholders:

Broader eligibility for international companies participating through Indian subsidiaries.
Increased competitiveness and potentially higher quality of bids in the mineral auctions.
Facilitated foreign direct investment (FDI) and technological collaboration through easier participation terms.

Legal Basis:

The amendment has been made under the authority of Section 13 of the Mines and Minerals (Development and Regulation) Act, 1957, reflecting the government’s proactive approach in refining regulations to enhance resource utilization and market competitiveness.

Effective Date:

These amended rules are effective immediately from their publication date, April 23, 2025.

This regulatory shift aligns with India’s broader economic objectives, aimed at attracting international investment and expertise into the mining sector, enhancing transparency, and promoting economic growth.

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Source: Ministry of Mines

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