Mines auction likely from Oct-Nov; Centre clears 58 blocks in 12 Indian states

The much-awaited auction of mineral-bearing mines, including with iron ore and bauxite, is expected to start from October-November with the Centre handing over a list of 58 explored blocks to 12 producing states.

"Mines auction is expected to begin from October-November. MECL has handed over reports of 58 blocks, which can be auctioned immediately, to states," said Steel and Mines Minister Narendra Singh Tomar.

Tomar said auction of minerals comes under the domain of states and the Centre has facilitated ground for auction by bringing in transparency and addressing problems in procedural delays. The state governments will have to do field work besides other formalities before auctions.

The Centre has spent Rs 350 crore on detailed exploration of 155 blocks. The Mineral Exploration Corporation Ltd (MECL) has identified 560 million tonnes of mineral resources in these mines.

"Mines auction in 12 states is expected to begin by October-November and the second phase will take place in another one year," Mines Secretary Balvinder Kumar said.

Tomar said the system of deemed renewal of mines have been done away with and the mines auctioned "will be given for 50 years so that they don't have to run."

Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2015 in March, paving the way for auction of mines containing minerals such as iron ore, bauxite and limestone.

The Minister said, "We have made National Mineral Exploration Trust. Presently only GSI and MECL are the only two institutions which were doing explorations. We have increased the number and included the PSUs of central and state governments in this like NMDC and SAIL. But without including private sector it cannot be completed. We are thinking on this."

The National Mineral Exploration Trust is likely to get Rs 300-500 crore as investment every year.

Tomar said the government plans to increase contribution of mining sector to the GDP from present about three per cent to six per cent.

Last month, Tomar had said that the Centre is working with states to start by year end auction process for about 200 mines containing minerals such as iron ore and bauxite.

Union Mines Ministry has identified 199 such mines that can be allocated through the auction route. They are located in mineral-rich states like Rajasthan, Jharkhand, Madhya Pradesh, Chhattisgarh, Karnataka and Odisha.