Government plans incentive for starting production early from auctioned mines

The central government plans to provide incentives to mine block allocatees for early commencement of production from the auctioned mines for increasing mineral output of the country and reducing imports.

The mines ministry plans to do the same through amendment of the mining rules and has sought comments and suggestions from stakeholders on the same. Further, it has been decided to provide in the Mineral (Auction) Rules, 2015 that for fully explored blocks, there would be a 50 per cent rebate in the quoted revenue share, for the quantity of mineral produced and dispatched earlier than scheduled date of production as provided in tender document. The incentive will encourage the lessee to operationalise the mine and start production at an early date thereby increasing the mineral production in the country.

 

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