Centre proposes cap on performance security and upfront amount to auction critical and strategic minerals

The Mines Ministry has proposed capping the performance security and upfront amount – payable after bagging the rights to extract minerals – for making critical and strategic mineral blocks more lucrative for mining companies. Presently the performance security and upfront amount is a percentage of the Value of Estimated Resources (VER).

According to the Mines Ministry, “Such huge requirement for performance security and upfront amount would reduce participation of the bidders in the auction process.”