Major objections from the steel, coal and mines ministries, and the industry?s resistance to extending the auction process for allocation of more natural resources, is holding up the government?s nod to the Ashok Chawla committee report.

A senior finance ministry official told FE that the auction process suggested by the panel for allocation of certain types of mineral licences on the lines of oil and gas blocks has been opposed by the mines ministry.

The Mines and Minerals (Development and Regulation) Bill approved by a group of ministers, which is set to be introduced in Parliament soon, says that except in case of deep-seated minerals,

exploration of which is more capital-intensive and risky, auction method could

be adopted.

However, the mines ministry wants a first-come-first-served policy along with a greater element of certainty about grant of various mining awards in case of unknown mineral deposits.

The Chawla panel, entrusted with the task of recommending possible reforms in allocation of minerals, spectrum, petroleum, natural gas, land, water and forests, had representatives from all key ministries.

Despite the fact that the committee finalised its report in early June, the report is yet to be accepted by the group of ministers on corruption headed by finance minister Pranab Mukherjee.

The committee of secretaries (CoS) headed by Cabinet secretary Ajit Kumar Seth was asked to look into the recommendations. The CoS has held few meetings to iron out differences among all the key ministries but still some ministries are yet to accept the Chawla panel proposals.

A finance ministry official said the committee?s initial suggestion of the auction route for the allocation of telecom spectrum has been diluted in its final report, which said a transparent mechanism would do.

In the CoS meeting, some secretaries favoured the auction route, but given the industry?s opposition to this route, which can increase their costs, a final call will have to be made at the Cabinet level.

A finance ministry official, however, told FE that the ministry is firm on its view that auction will bring ?open competition and transparency? to the system and help avoid any irregularities in allocation of natural resources.

The steel ministry has also opposed the committee suggestion for outright sale of the surplus land of public sector units.

Sources told FE that the ministry has argued that the PSU land should be leased so that the government can take it back when the industry gets closed or if the utility does not use it as per the terms of allocation.

In one of the COS meetings, the ministry also demanded preferential allotment of mines for the PSUs, without any competitive bidding.

The panel headed by former finance secretary Ashok Chawla was set up to correct the procedures in allocation of resources after the UPA government?s image took a beating due to alleged corruption in the sale of 2G spectrum.

One of the members of the panel said on condition of anonymity said, ?The recommendations of the panel are too radical to be implemented. Different sectors have diverse issues to deal with, one solution of auction cannot fit all.?