Incentive for early production from auctioned mines
The Ministry of Mines has prepared the Mineral (Auction) Amendment Rules, 2021 seeking to amend Mineral (Auction) Rules, 2015.
New Delhi: The government plans to provide incentive to mineral block allocatees for early commencement of production from the auctioned mines, a move aimed at increasing mineral output of the country and reducing imports.
The mines ministry plans to do the same through amendment of the mining rules and has sought comments and suggestions from stakeholders on the same.
The Ministry of Mines has prepared the Mineral (Auction) Amendment Rules, 2021 seeking to amend Mineral (Auction) Rules, 2015.
A high level committee (HLC) headed by Vice Chairman, NITI Aayog, on mines, minerals and coal sectors was constituted by the government to give recommendations for enhancing exploration and domestic production, reducing imports and achieving rapid growth in exports.
One of the recommendations in the panel report is for providing incentive to successful bidders for early commencement of production from the auctioned mines.
“For fully explored blocks, there would be a 50 per cent rebate in the quoted revenue share, for the quantity of mineral produced and dispatched earlier than scheduled date of production as provided in tender document,” the ministry.
The incentive will encourage the lessee to operationalise the mine and start production at an early date thereby increasing the mineral production in the country.
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