Mineral auction: 5 states give notice for 28 of 70 mines

New Delhi, Dec 4: Five states, including Chhattisgarh, Andhra Pradesh and Odisha, have issued notices inviting tenders for 28 of the proposed 70 mines to go under the hammer in the first phase of the auction process for mines like iron ore and limestone, it was announced on Thursday.

“After amendment in the MMDR Act for transparent allotment of mines, the auction process is going forward. Five states have issued notices inviting tenders for 28 blocks. The government is hopeful of auction of 70 mines by states by January in the first phase,” Steel and Mines Minister Narendra Singh Tomar told reporters here on the sidelines of an event of industry chamber CII.

“Very soon, there will be a new National Mineral Exploration Policy, the draft of which has been prepared for seeking suggestions from stakeholders and industry experts,” he said.

He said India lagged far behind developed nations in exploration of minerals, adding that the new exploration policy will attract private players in large numbers.

“There is need for raising the exploration spend from the current 0.4 percent, which is abysmally low,” the minister said.

According to Mines Secretary Balvinder Kumar, the ministry would soon notify rules for atomic minerals under the mining law.

While most states have set up National Mineral Funds, rules for the National Mineral Exploration Trust have been identified and mineral concession rules have been drafted, he said.

Kumar also said the major challenges facing the sector include attracting private sector players, capacity building, procedural delays, lack of data availability and duplication.

Earlier this year, parliament passed the Mines and Minerals (Development and Regulation) Amendment Act, 2015, which stipulates auction as the only means of allocating mining rights. (IANS)