Mining 2.0: Partial Leases and Digital Portals to Accelerate Production

The Ministry of Mines has proposed amendments to accelerate mineral production from auctioned blocks by allowing partial execution of mining leases.

Under the draft Mineral (Auction) Second Amendment Rules, 2026, companies may be permitted to commence mining operations in non-forest areas of a block even if forest clearances for other portions are still pending. The move is expected to help states grant faster approvals and reduce delays in the start of production. Officials said the forest portion must be located at the periphery of the block and should account for less than 20% of the estimated mineral resources.

The proposal also provides for separate execution of leases for forest and non-forest areas without any reduction in the upfront payment amount. Additionally, the ministry plans to shorten the time between issuance of the letter of intent and execution of the lease. A unified online mining portal is also proposed to automate processes such as auctions, payments, and lease execution.

Together, these measures aim to boost mineral output and attract greater investment into India’s mining sector.

News by Rahul Yelligetti.