India's mining sector is worried about new auction rules that may impose stricter penalties on existing leases. The government claims these changes aim to prevent resource hoarding.

India's mining industry is voicing concerns about amendments to the Mineral (Auction) Rules, 2015, which introduce stricter performance-linked penalties. Industry representatives warn that these changes could adversely affect existing leases. The government, however, insists that the amendments are designed to enforce discipline and accelerate production from auctioned mines, where delays have been common. Officials clarify that the new rules will not have retrospective applicability, meaning penalties will only apply to future approvals. The aim is to prevent hoarding of natural resources and allow for rebidding of assets. Since 2017, around 580 mines have been auctioned, with 77 currently operational. The Federation of Indian Mineral Industries has raised concerns about the feasibility of a six-month window for mining plan approvals, particularly for deep-seated minerals requiring extensive studies.