Mining industry flags retrospective impact of new auction rules; govt says aim is to curb hoarding

New Delhi: India’s mining industry has raised concerns about the recent amendments to the Mineral (Auction) Rules, 2015, warning that stricter performance-linked penalties could impact existing leases as well. The government, however, says the changes are aimed at enforcing discipline and speeding up production from auctioned mines, where delays continue to persist.

“Stricter rules regarding deduction of bank guarantee or performance security retrospectively apply to existing leases,” a mining sector representative told ET on condition of anonymity, flagging a contentious provision of the amended rules in force since October.