Maharashtra gets ready to auction Bauxite dumps

The new state Govt. of Maharashtra, India, led by Uddhav Thackeray has delivered a push in the mining activity by issuing fresh guidelines for the auction of tonnes of bauxite dumps.

Maharashtra has enormous dumps of bauxite. As per the new policy guidelines issued by the industries department, the dumps are proposed to be auctioned on “as is where is” basis. The rule will be applied for the disposal of mining dumps of major mineral outside the “legal mining areas”.

The new guidelines, issued on 8^th January’20, have come as uncertainty continues over the fresh extraction of ore in the country. Besides the disposal of low-grade ores and overburdened dumps on government and private land and forest areas, the guidelines are also meant to give the mining industry a push. It also comes at a time when a huge debt on the public exchequer has forced the government to seek additional sources to squeeze up revenue.

In 1977 a decision regarding the disposal of over-burden mine dumps was first initiated, though until 15^th March’14 was the time when Govt. came out with a policy for their disposal.

The revised guidelines have now been rolled out to push the activity. “In the 2014 policy, the government had entrusted the task of valuation and assessment of the ore to the collectors’ offices. But they found it difficult to undertake the exercise owing to lack of expertise. So, we have roped in the director of geology and mining (DGM) for the task,” said a senior official. In the revised policy, the DGM has also been urged to fix the offset price for the auction following assessment.

The mining dumps on the private land is apprehensive, the landowners will receive the first right to dispose of the dump at the highest bid accepted in the auction process. Now, if the owner fails to deposit the equivalent amount within a week, the disposal right will go to the highest bidder.

In the stint requiring bidders to deposit 25 percent of the offset price as a security deposit, the government has communicated that the winning bidder will be required to secure prior permission from the Union Environment Ministry and other departments before starting disposal work.

The rule of penalty has also been directed if excavation is done more than approved depth and width is executed, in that case, it would be rendered as “illegal excavation”