Kolkata-based Emami Cement has bagged the first-ever non-coal mining lease allocated through the auction route in Rajasthan.
Kolkata-based Emami Cement has bagged the first-ever non-coal mining lease allocated through the auction route in Rajasthan, by offering to pay the state government around R300 for every tonne of limestone production from the Nagapur 3B1b Deh block that has an estimated reserve of 168.84 million tonne (MT).
In addition, it would have to pay royalty, contribute to the district mineral foundation and national mineral exploration trust once the company starts mining, which might take a little over one-and-a-half years, considering the time required for land acquisition, to prepare the mining plan and to get environmental clearance.
Sources said Emami Cement emerged as the highest bidder by offering to pay 60.09% of the IBM price of R498 per tonne. The reserve price for bidding was fixed at 7% of IBM price and the floor price was 16.59% of the IBM price.
Auction of this single block is expected to yield R5,053 crore by way of bid-revenue in addition to royalty of R1,513 crore to the state over a period of 50 years.
With the successful auctioning of the Nagaur mine in Rajasthan, a total of eight mines have been auctioned so far since the MMDR (Amendment) ordinance was promulgated paving the way for auctioning of mines, aimed at ensuring transparency in the allocation of mines. Of the seven mines auctioned before this, three were in Chhattisgarh, two in Jharkhand and one each in Andhra Pradesh and Odisha.
These eight mines, located in Jharkhand, Chhattisgarh, Odisha and Andhra Pradesh apart from Rajasthan, has ensured a total of R25,056 crore additional revenue to the states over a period of 50 years. Had the earlier dispensation route was followed, states would have got just R 4,884 crore.
Mines ministry sources said notice inviting tenders (NITs) have already been issued for 33 leases and an additional 80 are scheduled to go under the hammer this fiscal.