The Centre is preparing a fresh set of amendments to Mineral (Auction) Rules, 2015 with an aim to cut the time between auction of mines and start of production.

Intermediary timelines for activities to be completed after issue of the letter of intent till execution of mining lease will be introduced under these changes.

The proposed modifications to rules also specify the percentage of performance security to be appropriated for delay in completion of milestones.

“States will be empowered to decide if delays in mine operationalisation are because of the successful bidder. If established, the process of deducting amounts from the payment security will begin,” a senior official told ET, adding the preferred bidder will recoup or top-up any appropriated performance security within two months.

If delays are due to the state government not giving clearances, the upfront payment payable will be reduced, benefiting mining companies. These rules are proposed to be retrospectively applicable on mines already awarded for milestones, which are remaining to be complied by the preferred bidder.

“Upfront payment payable shall reduce by 25% for the delay of each month in issue of the letter of intent and the preferred bidder shall pay only the remaining amount as the first instalment,” the official said.