JOIN USAuctioning of major minerals including iron ore will start soon with nine states having declared that they were going to put up 70 mines under the hammer.
While Karnataka invited tenders for 15 iron ore mines on October 21, Odisha, Jharkhand, Madhya Pradesh, Gujarat, Rajasthan, Andhra Pradesh, Maharashtra and Chhattisgarh are in the final stages to allocate mines through e-auction, a senior official in the Ministry of Mines told Deccan Herald.
As these mines would be allocated for 50 years lease, the government expects stiff competitions from bidders.
Early start
To ensure early starting of mining operations by the winners, the Ministry of Mines is also working on reduce the timeline for allocation of mines from the date of completion of auction, said the official.
The NDA government had initiated the process of transparent allocation of non-coal mines to end the corruption which marred the mining sector.
Though auctioning of mines under state domain, the Centre is helping the states to ensure the process is completed without any glitch.
Broad rules
While the Ministry of Mines made broad rules for the auctions, the states have to fix the reserve prices for each mines as well as minerals depending on estimated output, demand, grade and access. The states will also have to fix the pre-bid amount in the two-stage auctions that will involve technical and price offers made by companies.
The Mines and Minerals (development & regulation) Bill of 2015, passed by Parliament, make it mandatory that allotment of major mineral should be done through e-auctioning.
senior official in the Ministry of Mines: While Karnataka invited tenders for 15 iron ore mines on October 21, Odisha, Andhra Pradesh, Maharashtra and Chhattisgarh are in the final stages to allocate mines through e-auction