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  1. States begin process to auction 32 mines

States begin process to auction 32 mines

The initial bids for mines are scheduled to start from this week, extending till August.

By: | New Delhi | Published: June 28, 2016 7:30 PM
States have started auctioning mines. (Reuters) States have started auctioning mines. (Reuters)

Four states including Maharashtra and Karnataka have started the process of auctioning 32 mines that bear minerals such as iron ore, diamond, bauxite and limestone.

The initial bids for mines in these states, which also include Andhra Pradesh and Madhya Pradesh, are scheduled to start from this week, extending till August.

While Karnataka has put 14 iron ore mines on the block, Maharashtra has put two blocks each of bauxite and tungsten and one block each of iron ore, limestone, copper and manganese, a senior government official said.

Andhra Pradesh has put 5 limestone mines for auction and Madhya Pradesh has placed 4 limestone and one block of diamond to go under the hammer, beginning this month, he added.

While Andhra Pradesh had postponed the auction of these limestone blocks earlier due to lack of participation from the industry, the auction of the iron ore blocks in Karnataka could not take place due to the issue related to stamp duty.

Maharashtra and Madhya Pradesh are offering the mines for the first time, the official said.

Conforming the development, another government official said that this will mark the beginning of the second phase of the mines auction.

Around 106 mines containing minerals like iron ore, bauxite, limestone, gold, copper, phosphate and potash would be offered by states for auction in the second phase. It also includes leftover blocks from first phase.

In the last auction, 17 blocks could not be sold due to insufficient number of initial bids on account of factors such as quantity and grade of ore, quality of the mineralisation studies, land ownership pattern, dull market scenario and end- use conditions imposed by states.

In the first phase, mineral-bearing states had put under the hammer 47 mineral blocks, of which six have been sold, garnering a revenue, including royalty, DMF and NMET contributions, of about Rs 18,146 crore.

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