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Last Updated : Aug 10, 2018 10:31 PM IST | Source:

Gujarat: E-auction in mining sector throws up new entrants and ensures windfall for govt

The phase-I auctions of granite blocks, closed on Wednesday evening and witnessed Safal Constructions Pvt Ltd and Arun Digital Corporation emerge as winners.

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Representative image
Representative image

A real-estate developer from Ahmedabad and a businessman from Palanpur were winning bidders in the first ever e-auctions for granite blocks conducted in Gujarat.

The Phase-I auctions of granite blocks, as per a report in The Indian Express, closed on Wednesday evening and witnessed new entrants in the mining sectors such as the Ahmedabad-based Safal Constructions Pvt Ltd and Palanpur-based Arun Digital Corporation. However, it came as a surprise to see the State Government collecting a royalty of an estimated Rs 696 crore for the 30-year lease period.

The Commissioner of Geology and Mining Department of Government of Gujarat, Roopawant Singh said: "This is more than double the amount of royalty collected before e-auctions were introduced. The previous allotment regime had no concept of premium and the additional income now is due to the premium quoted by the bidder.”

Winning 10 granite blocks in the Mehsana district, Safal Constructions paid the highest premium on the two mining blocks it won. The company paid a premium of  31.26 per cent of the average sale price for the Otlapur-3 block in Satlasna taluka of Mehsana district; a premium of 28.11 per cent for the Otlapur-2 block. The company has Rs 427 crore to be paid as cumulative royalty to the government.
First Published on Aug 10, 2018 10:31 pm
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