Cement Manufacturers Association (CMA)

24 enhances fiscal discipline and reinforces bidder commitment beyond the auction stage. Likely effects: • Improves revenue predictability for States • Discourages passive holding of rights • Complements penalty provisions introduced in 2025 5. Investor Risk Mitigation through Refund Safeguards Explicit refund provisions for upfront payment and performance security where auctions are annulled for reasons not attributable to bidders introduce long-needed symmetry in risk alloca- tion. Likely effects: • Improves investor confidence • Reduces regulatory risk premium in bids • Strengthens administrative accountability 6. Expanded Role for Private Exploration Agencies Allowing Notified Private Exploration Agencies (NPEAs) to participate in auctions for blocks explored by them broadens private sector participation and strengthens the exploration to development linkage. Likely effects: • Aligns exploration incentives with development outcomes • Encourages higher-quality geological data generation • Supports competitive, exploration-led mineral development 7. Calibrated Incentives for Associated Critical Minerals Exempting auction premium for associated critical minerals (excluding graphite, phosphate, and potash) where their value is below 10% of total block value avoids disproportionate finan- cial burdens and promotes systematic recovery. Implications For Limestone & Cement Sector The limestone-cement value chain stands to derive early and tangible benefits from the 2026 amendment. Limestone mining is characterised by large volumes, low margins, high depend- ence on captive mining and acute sensitivity to timelines, logistics and land related constraints. The amendment directly addresses these structural vulnerabilities. Key sectoral outcomes include: • Faster operationalisation of captive limestone blocks • Reduced reliance on interim market sourcing of limestone • Improved reserve security visibility for medium and long term capacity planning • Enhanced alignment between mine development and plant commissioning timelines • Improved bankability of integrated cement–mining projects The tightened timeline regime for non-forest blocks particularly favours established cement producers with demonstrated execution capability, anchoring competitive advantage in operational readiness rather than speculative bidding. Way Forward The Mineral (Auction) Second Amendment Rules, 2026 mark a substantive evolution in mineral governance, from rule-heavy compliance to system enabled, incentive-aligned regulation. The reform improves execution certainty, rebalances risk between bidders and States, and meaningfully enhances operational viability of captive limestone mining. Its success, however, will depend on consistent implementation, particularly effective deployment of the Unified Mining Portal and uniform adoption by State Governments. Where institutional capacity keeps pace with policy design, the amendment has the potential to significantly accelerate mine-to-market conversion, improve cost competitiveness and stabilise cement supply chains. In doing so, it strengthens the sector's ability to support India's expanding infrastructure, housing, and industrial growth agenda with greater certainty and resilience.