New Delhi, October 20, 2026: The Central Government has amended India’s mineral auction rules to allow auctions involving specified minerals to proceed to the second round with as few as two technically qualified bidders. The changes also revise bidder qualification procedures and require the first auction attempt to be annulled if fewer than two participants meet the technical criteria.
The Ministry of Mines notified the Mineral (Auction) Third Amendment Rules, 2026, through Gazette notification G.S.R. 898(E), dated October 16, 2026. The amendments modify the Mineral (Auction) Rules, 2015, under the Mines and Minerals (Development and Regulation) Act, 1957.
The revised provisions under Rule 9 apply specifically to minerals listed in Part D of the First Schedule to the Act, rather than to all mineral auctions conducted in India.
Under the amended rules, when an auction attracts between two and five technically qualified bidders, all of them will be treated as qualified bidders for the relevant stage of the auction process.
The changes also allow auctions for these minerals to proceed to the second round when at least two technically qualified bidders are available, subject to the procedures prescribed under Rule 9.
However, if fewer than two bidders meet the technical qualification requirements, none will be treated as qualified bidders, and the first auction attempt must be annulled.
The amendments therefore establish a minimum requirement of two technically qualified participants for the specified auctions to advance to the second round.
Technical qualification means meeting the eligibility requirements for participation in the relevant stage of an auction. It does not mean that a bidder has won a mineral block or secured a mining lease.
The new provisions also state that all technically qualified bidders will be considered qualified when their number falls between two and five. This does not exempt participants from other applicable auction requirements or subsequent bidding procedures.
In addition to the changes under Rule 9, the government has amended three provisions of Rule 19E of the Mineral (Auction) Rules, 2015.
The amendments replace the word “three” with “two” in the first proviso to Rule 19E(9), as well as in Rule 19E(10) and Rule 19E(11).
The notification specifies these numerical changes but does not reproduce the full text of Rule 19E or separately explain their broader procedural implications.
By reducing the minimum number of technically qualified bidders required under the specified provisions, the amendments could allow certain mineral auctions to advance despite limited bidder participation.
However, the notification does not estimate how many auctions may be affected, whether additional companies are expected to participate or how the changes could influence auction revenue.
The Mineral (Auction) Third Amendment Rules, 2026, came into force upon publication in the Official Gazette.
The notification does not identify any mineral block being offered for auction, announce a successful bidder or confirm the allocation of a mining lease.
It also does not announce the approval of a new mining project or the commencement of mineral extraction.
The amendments therefore represent a regulatory change affecting specified mineral auctions, allowing the second round to proceed when at least two technically qualified bidders are available.
