Non-coal mining activity in the country is facing a setback owing to delays in forest and environmental clearances on the part of State governments. Of the 46 mining and prospecting leases that were auctioned by the Centre, only two have resulted in actual mining.

Of the 129 non-coal mines picked for auctions, 34 were auctioned last year and 12 more until June this year. Of the ones that were auctioned, only two have seen mining operations: both of them are in Karnataka, an official in the know said.

In March, Minister for Mines Narendra Singh Tomar had said that 41 blocks had been auctioned till then, with estimated revenues of ₹1.44 lakh crore. But the State coffers will fill up only if mining operations begin, but they have been a non-starter. This is likely to come up at the Central Coordination–cum–Empowered Committee (CCEC) meeting of 21 mineral-rich States this week.

“The Centre has given all permissions for the mines. It is for the States to ensure that the clearances are accorded for mining to begin,” a government official told BusinessLine .

A mining sector representative said, “Mining has started in the two blocks where forest and environment clearances were transferred to the successful bidder as per the Supreme Court’s orders.”

There has also been a slump in the number of blocks up for auctions. Seven States — Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Maharashtra, Odisha and Rajasthan — had identified 71 blocks for e-auctioning during the rest of 2017-2018, but offers came for only 46 blocks.

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