What key change do the Mineral (Auction) Third Amendment Rules, 2026 make for Part D minerals?
- A.Revenue share for the winner is capped at 50 per cent
- B.Technically qualified bidders needed in the second round fall from three to two
- C.Only public sector undertakings may bid in the second round
- D.The auction switches from forward to reverse bidding
Correct answer
Explanation
The correct answer is that the minimum number of technically qualified bidders required for the second round drops from three to two. The government notified these rules on 16 October 2026, and the change has been written into the tender documents of both tranches launched in Goa. Too few qualified bidders was a leading reason blocks had earlier gone unsold, so easing the threshold is meant to improve auction outcomes. The rules also provide that Letters of Intent will be issued automatically through the Unified Mining Portal, and they build on the Mineral (Auction) Second Amendment Rules, 2025 and the acceptance of insurance surety bonds. Option A invents a cap on revenue share. Option C is wrong because the aim is wider private participation, not a public sector monopoly. Option D is wrong because mineral blocks continue to use a two-stage ascending forward auction; it is Exploration Licence blocks that use a descending reverse auction.
Read the full article: Mines Ministry Opens 9th Critical Mineral Auction Tranche
Practice Questions
How many critical and strategic mineral blocks are on offer in the ninth tranche of e-auction launched by the Ministry of Mines?
- A.15 blocks
- B.20 blocks
- C.29 blocks
- D.64 blocks
Show answer
The ninth tranche of the e-auction of critical and strategic mineral blocks places twenty blocks before bidders, drawn from eight states.
Read the full explanation →Under which section of the MMDR Act was the Exploration Licence introduced?
- A.Section 4A
- B.Section 9B
- C.Section 10BA
- D.Section 11D
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The Exploration Licence was created through Section 10BA of the MMDR Act, and it allows private industry to put money into exploring minerals even before mining itself begins.
Read the full explanation →Which state received the largest amount in this instalment of tax devolution?
- A.Maharashtra
- B.Bihar
- C.Uttar Pradesh
- D.West Bengal
Show answer
In the state-wise break-up published with the release, Uttar Pradesh was allotted the largest amount of the Rs 1,09,019 crore shared among twenty-eight states, which follows from its being the biggest claimant on the states' share of central taxes.
Read the full explanation →Why did the Union Government advance the November instalment of tax devolution?
- A.Because the Finance Commission's term was ending
- B.In view of the festive season and to help states accelerate capital spending
- C.To offset a shortfall in GST compensation
- D.Because states had failed to meet borrowing limits
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The Ministry of Finance said the early transfer would also let states finance expenditure related to development and welfare.
Read the full explanation →How much tax devolution did the Union Government release to state governments on 5 November 2026?
- A.Rs 89,086 crore
- B.Rs 1,09,019 crore
- C.Rs 1,78,173 crore
- D.Rs 2,09,019 crore
Show answer
This was the regular instalment of tax devolution that the Union Government transferred to the state governments, and it was released on 5 November 2026.
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