The government has identified 71 major mineral blocks in seven states that will be auctioned during current financial year. In an official statement, the Ministry of Mines said, “These blocks include 6 blocks (2 Gold, 4 cement grade Limestone) in Andhra Pradesh, 11 blocks (4 Bauxite, 7 Limestone) in Chhattisgarh, 12 blocks (3 Bauxite, 9 Limestone) in Gujarat, 9 blocks (1 Bauxite, 3 Limestone,1 Gold, 1 Graphite, 2 Emerald, 1 Iron Ore) in Jharkhand, 18 blocks (4 Bauxite, 7 Limestone,1 Gold, 1 Graphite, 2 Manganese, 2 Iron Ore, 2 Copper) in Maharashtra, 7 blocks (1 Limestone,1 Graphite, 5 Iron Ore) in Odisha and 8 blocks (7 Limestone, 1 Copper) in Rajasthan.”

The Centre was apprised of this decision by States during a meeting of the Coordination-Cum-Empowered Committee (CCEC) of the major mineral producing states in New Delhi. Representatives from seventeen states were present in the meeting. The discussion mainly focussed on the states’ preparedness for e-auction of mineral blocks for fiscal 2017-2018.

Mines Secretary, Arun Kumar said that as a large number of merchant mining leases have elapsed due to the section 10A(2)(c) of the Mines and Minerals (Development & Regulation) Act 1957. These mines should now come up for auction route only.

Kumar also said that States need to submit their plans for continuing production of essential minerals as a large number of merchant mining leases will come up for auction on March 31, 2020. He said, “The States need to prepare their plans in advance latest by September this year and share it with Mines Ministry so that production slack can be met and the supply of essential minerals and iron ore remain smooth.”

An official statement said that the auctions conducted so far will fetch Rs 85,250 crore to States. Out of this, the additional contribution due to auction is Rs 67,501 crore over the licence period of 50 years. Just four States constitute 90 per cent of this takeaway and other states need to expedite their mining auctions.

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