- 2-year limit proposed, removing state-level extension flexibility
- MMDR amendment proposal invites stakeholder feedback until 22 Jan
The government is tightening the window to operationalise mines won through auctions. Currently under Section 4A (4) of the MMDR Act preferred bidders have two years to operationalise the mine they have bid for and begin dispatches of ore. Respective state governments can, if they choose, give them an additional year before the lease lapses automatically.
In a proposal shared on the Ministry of Mines website, the government has suggested doing away with the additional one year available at the discretion of state governments. The ministry believes that with various technological advancements and considerable improvement in infrastructure in the country, the time required for operationalisation of mines has considerably reduced.
Accordingly, the provision for granting additional extension of up to one year for commencement of production and dispatches may be removed.
Comments and suggestions on this proposed amendment, along with other amendments BigMint reported on recently (India: Govt seeks public feedback on lifting area caps for mineral concessions) are called for by 22 January 2026.
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