Offshore mining: Rules to be eased to bring small players to auction table

Proposed plan involves cap of Rs 100 cr each for performance security and upfront payment for a PL

In a bid to attract smaller players to the country’s first offshore mineral mining auction, the government is considering easing the regulations related to performance security and upfront payment.

The proposed plan involves a cap of Rs 100 crore each for performance security and upfront payment for a production lease (PL). A holder of a composite licence (CL) would only need to pay Rs 50 crore as performance security. However, if the CL holder applies for a PL, this amount would be revised to Rs 100 crore. Notably, no upfront payment is required for a composite licence.

For onshore mining,