The Mineral (Auction) Amendment Rules, 2026.

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-30012026-269670 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 70] NEW DELHI, THURSDAY, JANUARY 29, 2026/MAGHA 9, 1947 615 GI/2026 MINISTRY OF MINES NOTIFICATION New Delhi, the 29th January, 2026 G.S.R. 71(E).- In exercise of the powers conferred by section 13 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the Central Government hereby makes the following rules further to amend the Mineral (Auction) Rules, 2015, namely:- 1. Short title and commencement. — (1) These rules may be called the Mineral (Auction) Amendment Rules, 2026. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Mineral (Auction) Rules, 2015,— (a) in rule 9, in sub-rule (5), in the first proviso, after the words "through security deposit", the words "or through insurance surety bond" shall be inserted; (b) in rule 10, in sub-rule (1A), — (i) in the opening portion, the words "or extended period" shall be omitted; (ii) in clause (b), for the words “within fifteen days", the words and figures “and furnish performance security as specified in rule 12 within forty-five days" shall be substituted; (iii) the proviso shall be omitted; (c) in rule 12, in sub-rule (2), after the words "through security deposit", the following shall be inserted, namely:- "or through insurance surety bond in the format as specified in Schedule III-A"; (d) in rule 13, in sub-rule (3), in clause (a), for the word “Trust", the words "and Development Trust" shall be substituted; (e) in rule 18,— (i) in sub-rule (1), the proviso shall be omitted; (ii) in sub-rule (1A), — (A) in the opening portion, the words “or extended period" shall be omitted; (B) in clause (b), for the words "fifteen days", the words "forty-five days" shall be substituted; (C) the proviso shall be omitted; (f) in rule 19, in sub-rule (4),— (i) after the words "through security deposit", the following shall be inserted, namely:- "or through insurance surety bond in the format as specified in Schedule IV-A"; (ii) in the first proviso, after the words "security deposit", the words "or insurance surety bond" shall be inserted; (g) in rule 19E,— (i) in sub-rule (6), after the words "through security deposit", the words "or through insurance surety bond" shall be inserted; (ii) in sub-rule (10), — (A) clauses (iv), (v) and (vi) shall be renumbered as clauses (i), (ii) and (iii), respectively; (B) in clause (iii) as so numbered, after the words "on conclusion of the auction", the words "automatically by the online electronic auction platform for public view" shall be inserted; (h) in rule 19G,— (i) in sub-rule (1), — (A) for the words "fifteen days", at both the places, the words "forty-five days" shall be substituted; (B) the proviso shall be omitted; (ii) in sub-rule (2), — (A) in clause (b) for the words "fifteen days", the words "forty-five days" shall be substituted; (B) the proviso shall be omitted; (i) in rule 19H, in sub-rule (2), after the words "through security deposit", the following shall be inserted, namely:- "or through insurance surety bond in the format as specified in Schedule IV-A"; (j) after "Schedule III", the following Schedule shall be inserted, namely:- "SCHEDULE III-A Format of Insurance Surety Bond [See rule 12(2)] [Reference number of the Surety Insurer] [Date] To The Governor of [Name of State] [address] WHEREAS A. [Name of the Preferred Bidder/Principal Debtor] incorporated in India under the Companies Act, [1956/2013] with corporate identity number [CIN of the Preferred Bidder/Principal Debtor], whose registered office is at [address of registered office], India and principal place of business is at [address of principal place of business, if different from registered office] OR [Name of individual] who is citizen of India, having income tax permanent account number [number], residing at [address] OR [partnership firm/association of individuals], all members of whom are Indian citizens and residents of India whose principal place of business is at [address of principal place of business] (the "Preferred Bidder/Principal Debtor") is required to provide an unconditional and irrevocable guarantee in the form of insurance surety bond for an amount equal to INR [figures] (Indian Rupees [words]) as a performance security valid until [date of expiry of Insurance Surety Bond] ("Expiry Date"). B. The Insurance Surety Bond for performance security is required to be provided to The Governor of [Name of State], (the "State") for discharge of certain obligations under the Tender Document dated, [date] with respect to auction of [particulars of auction] and the Mine Development and Production Agreement to be executed between the State and the Preferred Bidder/Principal Debtor (collectively the “Agreement”). C. We, [name of the insurance company] through our branch at [name] (the “Surety Insurer”) at the request of the Preferred Bidder/Principal Debtor do hereby undertake to pay to the State an amount not exceeding INR [figures] (Indian Rupees [words]) ("Surety Bond Amount") to secure the obligations of the Preferred Bidder/Principal Debtor under the Agreement on demand from the State on the terms and conditions herein contained herein. NOW THEREFORE, the Surety Insurer hereby issues in favour of the State this irrevocable and unconditional guarantee in the form of insurance surety bond on behalf of the Preferred Bidder/Principal Debtor and affirms as follows, namely:- 1. This Insurance Surety Bond is being executed by the Surety Insurer in terms of the IRDAI (Surety Insurance Contract) Guidelines, 2022, issued by the Insurance Regulatory and Development Authority of India (IRDAI). 2. The Surety Insurer for the purpose hereof unconditionally and irrevocably undertakes to pay to the State without any demur, reservation, caveat, protest or recourse, immediately on receipt of first written demand from the State, a sum or sums (by way of one or more claims) not exceeding the Surety Bond Amount in the aggregate without the State needing to prove or to show to the Surety Insurer grounds or reasons for such demand for the sum specified therein and notwithstanding any dispute or difference between the State and Preferred Bidder/Principal Debtor on any matter whatsoever. The Surety Insurer undertakes to pay to the State any money so demanded notwithstanding any dispute or disputes raised by the Preferred Bidder/Principal Debtor in any suit or proceeding pending before any court or tribunal relating thereto the Surety Insurer's liability under this present being absolute and unequivocal. 3. The Surety Insurer acknowledges that any such demand by the State of the amounts payable by the Surety Insurer to the State shall be final, binding and conclusive evidence in respect of the amounts payable by Preferred Bidder/Principal Debtor to the State under the Agreement. 4. The Surety Insurer hereby waives the necessity for the State from demanding the aforesaid amount or any part thereof from the Preferred Bidder/Principal Debtor and also waives any right that the Surety Insurer may have of first requiring the State to pursue its legal remedies against the Preferred Bidder/Principal Debtor, before presenting any written demand to the Surety Insurer for payment under this Surety Bond. 5. The Surety Insurer further unconditionally agrees with the State that the State shall be at liberty, without the Surety Insurer's consent and without affecting in any manner the Surety Insurer's obligation under this Surety Bond, from time to time to: (i) vary and/or modify and of the terms and conditions of the Agreement; (ii) extend and / or postpone the time for performance of the obligations of the Preferred Bidder/Principal Debtor under the Agreement; or (iii) forbear or enforce any of the rights exercisable by the State against the Preferred Bidder/Principal Debtor under the terms and conditions of the Agreement, and the Surety Insurer shall not be relieved from its liability by reason of any such act or omission on the part of the State or any indulgence by the State to the Preferred Bidder/Principal Debtor or other thing whatsoever which under the law relating to sureties would, but for this provision, have the effect of relieving the Surety Insurer of its obligations under this Surety Bond. 6. Any payment made hereunder shall be made free and clear of and without deduction for, or on account of, any present or future taxes, levies, imposts, duties, charges, fees, commissions, deductions or withholdings of any nature whatsoever. 7. The Surety Insurer agrees that State at its option shall be entitled to enforce this Surety Bond against the Surety Insurer, as a principal debtor in the first instance without proceeding at the first instance against the Preferred Bidder/Principal Debtor. 8. The Surety Insurer further agrees that the Surety Bond herein contained shall remain in full force and effect during the period that specified in the Agreement and that it shall continue to be enforceable till all the obligations of the Preferred Bidder/Principal Debtor under or by virtue of the said Agreement with respect to the Performance Security have been fully paid and its claims satisfied or discharged or till the State certifies that the terms and conditions of the Agreement with respect to the Performance Security have been fully and properly carried out by the Preferred Bidder/Principal Debtor and accordingly discharges this Surety Bond. Notwithstanding anything contained herein, unless a demand or claim under this Surety Bond is made on the Surety Insurer in writing on or before the Expiry Date the Surety Insurer shall be discharged from all liability under this Surety Bond thereafter. 9. The payment so made by the Surety Insurer under this Surety Bond shall be a valid discharge of Surety Insurer's liability for payment thereunder and the State shall have no claim against the Surety Insurer for making such payment. Dated the [day] day of [month] [year] for the Surety Insurer. In witness whereof the Surety Insurer, through its authorized officer, has set its hand and stamp. (Signature) (Name and Designation) (Surety Insurer Stamp)]."; (k) after "Schedule IV", the following Schedule shall be inserted, namely:— "SCHEDULE IV-A FORMAT FOR INSURANCE SURETY BOND FOR COMPOSITE LICENCE AND EXPLORATION LICENCE [See rules 19 (4) and 19H (2)] [Reference number of the Surety Insurer] [Date] To The Governor of [Name of State] [address] WHEREAS A. [Name of the Preferred Bidder] incorporated in India under the Companies Act, [1956/2013] with corporate identity number [CIN of the Preferred Bidder/Principal Debtor], whose registered office is at [address of registered office], India and principal place of business is at [address of principal place of business, if different from registered office] OR [Name of individual] who is citizen of India, having income tax permanent account number [number], residing at [address] OR [partnership firm/association of individuals], all members of whom are Indian citizens and residents of India whose principal place of business is at [address of principal place of business] (the “Preferred Bidder/Principal Debtor”) is required to provide an unconditional and irrevocable guarantee in the form of insurance surety bond for an amount equal to INR [figures] (Indian Rupees [words]) as a performance security valid for an initial period of [•] ([]) years from the date hereof ("Expiry Date"). B. The Performance Security is required to be provided to the Governor of [Name of State], (the "State") for discharge of certain obligations under the Tender Document dated, [date] with respect to auction of [particulars of auction] AND the deed for grant of a prospecting licence to be executed between the State and the Preferred Bidder/Principal Debtor AND the Mine Development and Production Agreement to be executed between the State and the Preferred Bidder/Principal Debtor (collectively the "Agreement"). C. We, [name of the insurance company] through our branch at [name] (the "Surety Insurer") at the request of the Preferred Bidder/Principal Debtor do hereby undertake to pay to the State an amount not exceeding INR [figures] (Indian Rupees [words]) ("Surety Bond Amount ") to secure the obligations of the Preferred Bidder/Principal Debtor under the Agreement on demand from the State on the terms and conditions herein contained herein. NOW THEREFORE, the Surety Insurer hereby issues in favour of the State this irrevocable and unconditional guarantee in the form of insurance surety bond on behalf of the Preferred Bidder/Principal Debtor and affirms as follows, namely:- 1. This Insurance Surety Bond is being executed by the Surety Insurer in terms of the IRDAI (Surety Insurance Contract) Guidelines, 2022, issued by the Insurance Regulatory and Development Authority of India (IRDAI). 2. The Surety Insurer for the purpose hereof unconditionally and irrevocably undertakes to pay to the State without any demur, reservation, caveat, protest or recourse, immediately on receipt of first written demand from the State, a sum or sums (by way of one or more claims) not exceeding the Surety Bond Amount in the aggregate without the State needing to prove or to show to the Surety Insurer grounds or reasons for such demand for the sum specified therein and notwithstanding any dispute or difference between the State and Preferred Bidder/Principal Debtor on any matter whatsoever. The Surety Insurer undertakes to pay to the State any money so demanded notwithstanding any dispute or disputes raised by the Preferred Bidder/Principal Debtor in any suit or proceeding pending before any court or tribunal relating thereto the Surety Insurer's liability under this present being absolute and unequivocal. 3. The Surety Insurer acknowledges that any such demand by the State of the amounts payable by the Surety Insurer to the State shall be final, binding and conclusive evidence in respect of the amounts payable by Preferred Bidder/Principal Debtor to the State under the Agreement. 4. The Surety Insurer hereby waives the necessity for the State from demanding the aforesaid amount or any part thereof from the Preferred Bidder/Principal Debtor and also waives any right that the Surety Insurer may have of first requiring the State to pursue its legal remedies against the Preferred Bidder/Principal Debtor, before presenting any written demand to the Surety Insurer for payment under this Surety Bond. 5. The Surety Insurer further unconditionally agrees with the State that the State shall be at liberty, without the Surety Insurer's consent and without affecting in any manner the Surety Insurer's obligation under this Surety Bond, from time to time to:- (i) vary and/or modify and of the terms and conditions of the Agreement; (ii) extend and / or postpone the time for performance of the obligations of the Preferred Bidder/Principal Debtor under the Agreement; or (iii) forbear or enforce any of the rights exercisable by the State against the Preferred Bidder/Principal Debtor under the terms and conditions of the Agreement, and the Surety Insurer shall not be relieved from its liability by reason of any such act or omission on the part of the State or any indulgence by the State to the Preferred Bidder/Principal Debtor or other thing whatsoever which under the law relating to sureties would, but for this provision, have the effect of relieving the Surety Insurer of its obligations under this Surety Bond. 6. Any payment made hereunder shall be made free and clear of and without deduction for, or on account of, any present or future taxes, levies, imposts, duties, charges, fees, commissions, deductions or withholdings of any nature whatsoever. 7. The Surety Insurer agrees that State at its option shall be entitled to enforce this Surety Bond against the Surety Insurer, as a principal debtor in the first instance without proceeding at the first instance against the Preferred Bidder/Principal Debtor. 8. The Surety Insurer further agrees that this Surety Bond and the guarantee obligations herein contained shall remain in full force and effect and shall continue to be enforceable till: (i) all the obligations of the Preferred Bidder/Principal Debtor under or by virtue of the said Agreement with respect to the Performance Security have been fully paid and its claims satisfied or discharged; or (ii) till the State certifies that the terms and conditions of the Agreement with respect to the Performance Security have been fully and properly carried out by the Preferred Bidder/Principal Debtor and accordingly discharges this Surety Bond; or (iii) on provision of a revised performance security under sub-rule (2) of rule 19 of the Mineral (Auction) Rules, 2015 whichever is later. Notwithstanding anything contained herein, unless a demand or claim under this Surety Bond is made on the Surety Insurer in writing on or before the Expiry Date the Surety Insurer shall be discharged from all liability under this Surety Bond thereafter. 9. The payment so made by the Surety Insurer under this Surety Bond shall be a valid discharge of Surety Insurer's liability for payment thereunder and the State shall have no claim against the Surety Insurer for making such payment. 10. This Surety Bond is subject to the laws of India. Any suit, action, or other proceedings arising out of this Surety Bond or the subject matter hereof shall be subject to the exclusive jurisdiction of courts at the State of [respective State]. 11. The Surety Insurer has the power to issue this Surety Bond in favour of the State. This Surety Bond will not be discharged due to the change in the constitution of the Surety Insurer. 12. The Surety Insurer undertakes not to revoke this Surety Bond during its currency except with the previous consent of the State in writing. 13. The State may, with prior intimation to the Surety Insurer, assign the right under this Surety Bond to any other departments, ministries or any governmental agencies, which may act in the name of the Governor. Save as provided in this Clause, this Surety Bond shall not by assignable or transferable. 14. Notwithstanding anything contained herein, (a) the liability of the Surety Insurer under this Surety Bond shall not exceed the Bond Amount; and (b) this Surety Bond shall be valid up to the expiry date. 15. The Surety Insurer is liable to pay the surety bond amount or any part thereof under this Surety Bond only and only if the State serves upon the Surety Insurer a written claim or demand on or before the expiry date. Dated the [day] day of [month] [year] for the Surety Insurer. In witness whereof the Surety Insurer, through its authorised officer, has set its hand and stamp. (Signature) (Name and Designation) (Surety Insurer Stamp)].". [F. No. M.IV-2306/10/2025-Mines IV-Part(1)] SHAKIL ALAM, Economic Advisor Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 406(E), dated the 20th May, 2015 and was last amended, vide number G.S.R. 776(E), dated the 22nd October, 2025. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.