The Mines Ministry has proposed changes to speed up mineral production from auctioned blocks by allowing partial execution of mining leases.

Under the draft Mineral (Auction) Second Amendment Rules, 2026, companies may be permitted to start mining operations in non-forest areas of a block even if forest clearances for other portions are still pending. This move is expected to help states grant faster approvals and reduce delays in starting production. According to officials, the forest portion must be located at the edge of the block and should account for less than 20 percent of the estimated mineral resources.

The proposal also allows separate execution of leases for forest and non-forest areas without reducing the upfront payment amount. In addition, the Ministry plans to cut the time between issuing the letter of intent and executing the lease. A unified online mining portal will be created to automate processes such as auctions, payments, and lease execution. These measures aim to boost mineral output and attract greater investment into India’s mining sector.