| Date: |
30-07-2015 |
| Subject: |
Government targets auctions of 120 greenfield mines this fiscal |
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DELHI: The Modi government is aiming to conclude auctions for 120 greenfield mines bearing major minerals by the end of this financial year in two phases, the first of which is expected to start in October.
The Centre is betting that this will revive the moribund mining sector, which contracted for three years in a row between 2011-12 and 2013-14 and grew at a marginal 1.4 per cent in 2014-15. The sector has been caught in a crossfire of scams, court judgments cancelling leases and uncertain environmental norms, forcing India Inc to import critical raw material such as iron ore. States including Odisha, Gujarat and Chhattisgarh are competing to be first off the block in the auctions for the mines which will be allotted to the highest bidder under a new law cleared by Parliament in March.
"We are helping and facilitating the states in the process and believe around 120 mines would be ready for auction this financial year," Mines Secretary Balvinder Kumar told ET. "Many states are at the threshold and have begun surveys to mark out boundaries and fix the reserve price for individual mines."
The Modi government has assigned top priority to expediting mineral auctions to be undertaken by the states. Kumar, who took charge at the ministry earlier this month, has visited seven states to set the ball rolling.
"By next month, I would have covered all states with significant mineral resources," he said. "The states and Centre are on the same page about the auction rules and tender documents...now everything is clear. We are moving fast in this direction... the trend (in the sector) will change once these mines start operating."
Rajasthan has identified 61 mines of different minerals for the first set of auctions, followed by Chhattisgarh (21), Odisha (16), Jharkhand (10) and Gujarat (six).
While most of the mines are for iron ore, bauxite, dolomite and limestone, Rajasthan is also expected to bid out a gold mine. By next month, the government will have a rough estimate of how much mineral wealth could be unlocked from these mines.
Most states have engaged merchant banker SBI Capital Markets and Nagpur-based public sector firm Mineral Exploration Corporation Ltd to conduct the auctions, based on an advisory from the Centre.
To expedite the process, the Union Mines ministry has shared geological exploration reports for these untapped mineral riches with the states free of cost, marking a departure from the past, when such data was sold at a high price.
Source : economictimes.indiatimes.com
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