Odisha is facing difficulties in preparing a list of mineral blocks to be put up for auction.
While the State has identified mineral bearing acreages, delays in getting the global positioning system (GPS) coordinates to demarcate the boundaries for the blocks is holding up the notification of these areas for auction, a senior Mines Ministry official said.
According to the official, the Odisha Government had informed the Mines Ministry that large tracts of land have been identified with limestone and iron ore deposits.
Delayed till December
“Some areas have also been earmarked for a prospecting licence-cum-mining lease (composite licence).
But, they are yet to provide the number of blocks that will be available on these areas,” the official said.
In a meeting of the Mines Ministry and various States earlier this month, Odisha indicated that blocks can only be notified for auction by December.
Unlike the coal block auctions, the mine auctions are to be conducted by the States according to the rules and regulations framed by the Centre.
Meanwhile, the number of available blocks for auctions has also come down from the Mines Ministry’s earlier estimation.
In January, the Ministry estimated that 199 blocks will be ready for auctions. However, in the meeting held in June, 10 States have said around 78 blocks (both mining lease and composite licence) will be ready for auctions. “The States include Andhra Pradesh, Telangana, Rajasthan, Madhya Pradesh, Karnataka, Jharkhand, Chhattisgarh and others. Goa has indicated that its blocks will be available after 2020,” the Mines Ministry official said. However, none of the States are likely to be ready for auctions before September 2015.
Most States have tentatively given December as the earliest month for auctions to begin. The urgency of initiating the auction processes has been emphasised.
“State governments should not see mining sector only from point view of revenue generation but should approach the sector for its co-ordinated development and mineral conservation,” the official added.
The Mines and Minerals (Development and Regulation) Act was amended in January.
The rules for conducting the auctions were notified by April. While the Mines Ministry still expects auctions to begin in the current fiscal year, whether the timeline will be met remains unclear.
Prasanta Patnaik