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Chhattisgarh has become first state in the country toe-auction minor mineral mines

Representative image Photo: Shutterstock
The state government auctioned the Bharda dolomite mine located in Bilaspur district through the route. The mine having an estimated reserve of about 1.5 million tonnes is spread across 3.80 hectare area.

“As against the reserve price of Rs 15 per tonne, the bidders quoted highest price of Rs 154 per tonne,” Reena Kangale, Mining Director, said. The auction money is two times the royalty fixed for dolomite at Rs 75 per tonne.

The state exchequer would get Rs 18 crore as auction money. Besides royalty of Rs 9 crore, the mine would contribute Rs 90 lakh to the district fund (DMF). The company bagging the deal had been granted composite licence that includes prospecting licence (PL) and mining licence (ML).
The mineral-rich Chhattisgarh state has scored over other states to execute the auction process under the new act. According to the new Mines and Minerals (Development and Regulation) Act, 2015, state governments have to auction non-coal mines through a two-tier forward-bidding process. Before this Act, mines were handed out to miners on discretionary basis by the state governments.
Chhattisgarh is also first state to successfully conclude the first phase of non-coal mining auctions. The state government would get an additional Rs 4,413 crore over the life of lease in addition to royalty and district foundation.
For the first time, the gold mine was also put up for auction in Chhattisgarh. The London-listed Vedanta Resources bagged the mine located in Baghmara (Sonakhan) in Balodabazar district.http://www.business-standard.com/article/economy-policy/chhattisgarh-becomes-first-state-to-e-auction-minor-mineral-116111100914_1.html

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Comment (1)

  1. K SHESHU BABU

    The auction of minor mines of minerals to foreign companies like Vedanta resources may provide the government with auction money to exchequer but the proposal may not yield results.

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