Moneycontrol
Feb 15, 2016 08:21 AM IST | Source: PTI

After Jharkhand, other states may auction 40 mines by March

Jharkhand on February 12 became the first state to auction two limestone blocks through an electronic platform after the passage of the MMDR Act by Parliament.

After Jharkhand, other states may auction 40 mines by March

After successful e-auction of two limestone blocks by Jharkhand, other states, including Odisha and Rajasthan, are likely to put under the hammer about 40 mines containing minerals like iron ore by March-end.


Jharkhand on February 12 became the first state to auction two limestone blocks through an electronic platform after the passage of the MMDR Act by Parliament.


"States were keen to know about the auction process for blocks other than coal and lignite. Now that Jharkhand has successfully auctioned two limestone blocks, we expect states to auction about 40 mineral blocks containing iron ore, bauxite, limestone etc by March," a senior Mines Ministry official told PTI.


The official said a total of 43 blocks -- excluding coal and lignite -- have been identified by various states for e-auction, and barring a few, for which the response is not good, all are likely to be auctioned soon.


He said eight states, including Jharkhand, Odisha, Karnataka, Gujarat, Rajasthan and Maharashtra have already lined up mines for auction.


Jharkhand successfully auctioned mining leases of two limestone blocks at a premium of 12 per cent each against reserve price of 10 per cent premium. The state is endowed with rich mineral reserves and possess about 40 per cent of total mineral resources of India.


Apart from Jharkhand, mineral bearing states like Odisha, Karnataka, Gujarat, Rajasthan and Maharashtra have put 16 iron ore and 23 limestone mines under the hammer for the first phase of auction.


While Karnataka has put up 14 iron ore mines, Maharashtra and Odisha have offered one each, as per information.


In the case of limestone, Andhra Pradesh has put up six blocks for auction followed by Gujarat (5), Chhattisgarh (4), Rajasthan (3), Odisha and Jharkhand two each and Maharashtra had placed one block under the hammer.


The number of iron ore mines is expected to increase with additional blocks to be put for auction by states.


As per the market estimates, total cement grade limestone reserve available is around 89,862 million tonnes.


Centre expects the 12 mineral-producing states to offer a as many as 70 mines producing minerals such as Iron ore, Limestone and Bauxite in the first phase of auctions.


In March 2015, Parliament passed the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2015, which paved the way for states to auction iron ore and non-coal mineral mines.

Last year three three rounds of coal auction have generated proceeds of more than Rs 3 lakh crore, which would be realised over 30 years by states where the mines are located.

Sections
Follow us on
Available On