New Delhi: 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 tonnes 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.
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.
Tomar said a new Mineral Exploration Policy was also on the anvil and for this the government would constitute a committee, headed by Additional Secretary, Mines.
"We will form a Committee, headed by Additional Secretary R Sridharan. That committee will hold talks with stakeholders and whatever be the conclusions, based on that we will work further. The timeframe however has not been decided but the policy will come out soon," Tomar said.
The minister said to give thrust to explorations, where barely 10 percent area could be explored in the last 68 years in India compared to 100 percent in countries such as China and Australia, special provisions have been made in the Act.
"We have made National Mineral Exploration Trust. Presently only GSI and MECL are the only two institutions which were doing explorations. We have increased the number and included the PSUs of central and state governments in this like NMDC and SAIL. But without including private sector it cannot be completed. We are thinking on this," he said.
The Minister said the National Mineral Exploration Trust is likely to get Rs 300-500 crore as investment every year.
Tomar said the government plans to increase contribution of mining sector to the GDP from present about three percent to six percent.
On percentage of royalty to Mineral Development Funds, he said, "We are discussing on percentage of royalty for Mineral Development Fund. We will decide soon."
Mining affected areas would be developed and DMF money will be used for the affected people besides development of affected states, he said.
Tomar said steel sector was facing problems but the government was serious to address these issues.
On import duty on steel, he said any decision will be taken by the government in view of the prevailing situation.
Last month, Tomar had said that the Centre is working with states to start by year end auction process for about 200 mines containing minerals such as iron ore and bauxite.
As mines is a state subject, auctions will be conducted by States and the central government's role will be limited to framing the rules that are to be followed in the process.
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 Odisha.
