The allocation of mines via the competitive bidding route is gathering momentum with states set to auction 130 non-coal blocks in the current fiscal. Since the amendment to the Mines and Minerals (Development and Regulations) Act in January 2015, just five non-coal blocks have been allocated. However, states believe most mines that are now coming under the hammer will be allocated by December 2016.
Mineral-rich states such as Chhattisgarh, Karnataka and Jharkhand will immediately auction 47 blocks including limestone, bauxite and iron ore mines. An additional 83 mines will be auctioned in the next phase, minutes of a recent Centre-states meeting revealed.
The meeting was convened by Union mines secretary Balvinder Kumar to take stock of states’ preparedness for auctioning mining blocks. Rajasthan, which is ready with seven limestone blocks in the first phase will, thereafter will put up for auction an additional 19 blocks.
A dozen mines each from Andhra Pradesh, Gujarat and Odisha are to be auctioned shortly. Andhra Pradesh had put six limestone blocks for auction earlier this year but following the lukewarm response, it has extended the final date for bids to April 30. Difficulty in acquiring land is one of the major reasons for applicants not coming forward, the state government said at the meeting. Government officials, however, added that exploration, survey and demarcation work by state agencies is on for 12 other blocks to be put up for auction.
Gujarat, which saw lower participation from bidders earlier, is preparing 12 blocks — two bauxite and 10 limestone — to be bid out. Three notices inviting tenders will be sent in April and the rest would be put up for auction by June, the state said in the meeting.
Karnataka, which plans to auction 14 blocks shortly, is also readying with eight blocks to be auctioned later in the year.
Chhattisgarh, which earned the distinction of being the first state to allocate mines through the auction route, said it has successfully auctioned three mines so far and plans to re-tender for two more mines. For the next round, it is updating geological reports for eight limestone and two bauxite mines. Jharkhand has auctioned two blocks so far, and plans to re-tender one and come out with a fresh tender for three more mines. By the end of June, it plans to auction four bauxite, one limestone and one graphite block.
Madhya Pradesh, which plans to put up four blocks for auction, is readying four limestone blocks in the next phase. Tamil Nadu plans to auction just one block in the current year. Maharashtra’s four blocks failed to catch the fancy of miners primarily because some of them were located in eco-sensitive zones of Western Ghats. The state plans to re-tender for four blocks and come out with fresh tenders for six more thereafter.
