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Mines auction likely from Oct-Nov; Centre clears 58 blocks

Updated: August 7th, 2015, 23:38 IST
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     New Delhi, August 7: 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,” Steel and Mines Minister Narendra Singh Tomar told reporters here.

      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, Tomar told reporters on the sidelines of a CII event here. The Centre has spent Rs 350 crore on detailed exploration of 155 blocks. The Mineral Exploration Corporation Ltd (MECL) has identified 560 million tonne 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. Earlier, 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 Orissa among others.

         In the first ever sale of coal mines this year, the government garnered over Rs 2 lakh crore by auctioning just 29 blocks in two phases, surpassing the presumptive loss of Rs 1.86 lakh crore estimated earlier by the Comptroller and Auditor General (CAG) for allotment of mines without auction.

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