The government had started the process of allotting mineral blocks through auction in 2015-16. , Representative Image | , photo credit: GN Rao
The government is planning to sell six mineral blocks in the states of Odisha and Rajasthan next month. Of the six blocks to be auctioned, three are bauxite mines and three are limestone blocks.
According to a latest report by the Ministry of Mines, Odisha has three bauxite blocks – Balda, Kutrumali and Sijimali – and two limestone mines – Garramura and Uskalabagu – untouched blocks.
The remaining mine is the Nimana-Duniya limestone block in Kota, Rajasthan. The notice inviting tender for all the six blocks was issued in the month of November.
Since the amendment of the MMDR Act, 1957 in 2015, a total of 216 mineral blocks have been auctioned in 10 states till 30 November.
Three mineral blocks – two limestone and one iron ore – in Rajasthan and Chhattisgarh were successfully auctioned last month.
The government had started the process of allotting mineral blocks through auction in 2015-16.
The ministry hopes to auction 500 mines by the end of 2024. The Center aims to increase the contribution of the mining sector to the country’s gross domestic product (GDP) from 2.5% at present to 5 per cent.
During the last few years, the Government has undertaken significant reforms to open up the mineral sector to ensure its contribution towards achieving the goals of the National Policy.
Major reforms include the enactment of the Mines and Minerals (Development and Regulation) (Amendment) Act, 2015, which made the process of allocation of mineral concessions completely transparent by introducing public auctions with the active participation of state governments.
In a federal structure, the states own the mineral wealth in their respective territories. In order to realize the benefits of mineral wealth, it is the primary and crucial role of the states to come up with auctionable mineral blocks that can start production.
The Mines Ministry had earlier said that the amendment to the mineral auction rules would encourage competition which would ensure greater participation in the sale of blocks.
The Mines Ministry had earlier notified the Minerals (Evidence of Mineral Contents) Second Amendment Rules, 2021 and the Minerals (Auction) Fourth Amendment Rules, 2021 to amend the Minerals (Evidence of Mineral Contents) Rules, 2015 and Minerals (Auction) Rules, 2015. Rules, 2015 (Auction Rules).