Key insights
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1
Auction design shifted from volume-based selection to price bidding: The cabinet-approved reforms replace volume-based auctions that could end in draw-of-lots selection with competitive price bidding, along with upfront payments and advance royalty collection.
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2
Environmental clearance responsibility moved to bidders: Responsibility for obtaining environmental clearances was shifted from the government to bidders, and the change is expected to reduce delays in making mines operational.
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3
Dead rent and longer leases introduced to discourage speculation: Dead rent provisions were introduced to ensure minimum payments even if mines are not operationalised, and lease tenures were extended from three years to five years.
Takeaways
Punjab is running online auctions for commercial mining sites under revised rules that the government says will improve transparency, curb illegal mining, and raise revenues.
Topics
World & Politics Policy & Regulation Business & Markets Energy & Commodities