Mining (State Participation) Regulations, 2020 (G.N. No.939 of 2020).

These Regulations, consisting of 14 articles organized into two parts, establish the framework for the Government's involvement in mining operations through non-dilutable free carried interest shares. Applicable to mining companies with mining or special mining licenses, these regulations define key terms and mandate that the Government acquires at least 16% of such shares, potentially increasing up to 50% based on tax expenditures. The Treasury Registrar, in consultation with various government bodies, oversees the acquisition and control of these shares, allowing the Government rights to dividends, participation in company meetings, and director appointments without the obligation to contribute equity capital. Every two years, the Government reviews tax expenditures to adjust its shareholding. Mining companies are required to disclose information about expenditures, production, revenue, and profit to the Commission, and the Treasury Registrar determines the mode of payment for profits from the Government's shares. These regulations ensure the protection of government interests throughout the life of the mineral rights, providing a structured approach to state participation in the mining sector.