BHUBANESWAR: After inviting bids for grant of mining lease (ML) and composite lease (CL) for 20 critical and strategic mineral blocks across states including four from Odisha through an auction process, the Ministry of Mines has proposed to put a cap on the performance security and upfront amount to encourage more participation in the bidding process.
At present, the performance security and upfront amount is required to be paid by successful bidders for commercial exploitation minerals is 0.5 per cent of the value of the estimated resources which is very high and has been acting as a barrier for the participation of more bidders in the auction process. “Such huge requirement for performance security and upfront amount would reduce participation of the bidders in the auction process,” said the Ministry justifying the need for amendment of the Mineral (Auction) Rules, 2015.
