Govt notifies rules of Mines and Minerals Act

A few days after the Parliament passed the Mines And Minerals Development and Regulation Act, the government has notified its rules. Basically, the Act makes auction the only route to sell natural resources. Rules have been notified for the sale of four minerals which include iron ore, manganese, bauxite and limestone.

State governments have been empowered to conduct the auction. They will identify and demarcate areas for minerals auction. This will entail two rounds of minerals auction - technical and financial round.

Bidders will have to submit eligibility document along with initial price offer in the first round. Technically qualified bidders will have to match/ quote above the reserve price.

The top 50 percent of bidders in technical round will qualify for the financial round. Top bidder's initial price offer will be considered as the floor price. The winner will be selected on bids equal or above floor price.