Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
The Federation of Indian Mineral Industries has debunked the government projection of open auction of mines as the panacea for all ills plaguing the mining industry, and generating huge revenues for State governments through resource development.
Following an analysis of the auction system of mines in the last 10 years, FIMI said the system has resulted in scare setting in among various industries about the availability of raw materials, which led to high and unsustainable bids, and costly raw materials, rendering the industries unviable, leading to their imports and foreign exchange outgo.
Also read: Steel cos, iron ore miners spar over exports to China
While the state government has generated additional revenue of ₹2,026 crore in 2018-19, the lower coal production during the period resulted in imports worth ₹5,320 crore, leading to net expenditure of 2.63 times more than the revenue generated, said RK Sharma, Secretary General, FIMI.
Moreover, not a single greenfield mining project of coal or non-coal has come into operation while the country continues to import more coal and various metals, he said.
The auction has even halted work in previously operational mines having valid environment and forest clearances.
There were 37 coal mines in operation before the auction, but the auction process has reduced it to 20, bringing coal production from these mines down from 42.88 million tonnes in 2014-15 to 30 mt in 2018-19.
Of the 19 coal blocks auctioned last June, 17 were fully explored and two partially explored; these were expected to produce about 51 million tonnes per annum at their peak rated capacity.
Also read: Iron ore mine owners, govt at loggerheads over exports
Auctions have created artificial scarcity to the extent that companies are placing unsustainably high bids of beyond 100 per cent of the sale value of resources. Any mine at a premium in excess of 100 per cent would inevitably operate at a loss, FIMI said.
As per FIMI analysis, in case of 103 auctioned non-coal blocks, 103 per cent of the estimated value of resources auctioned will go to the government as revenue, indicating that the investor in the auction gets negative return on investment.
While 3,248 mining leases for non-coal minerals were executed in 2006-14, post introduction of the auction regime only 28 brownfield mining leases have been executed with pre-existing environment and forest clearances.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
Here is a checklist that equips you to discern the market nuances
Sensex, Nifty 50 have witnessed sharp decline
The fund has consistently outperformed S&P BSE 100 TRI over one, three and five years
Returns are superior to immediate annuity plans, but SCSS can secure better rates for new investors sooner if ...
With the public looking beyond mainstream media for reports from the ground, independent digital platforms are ...
Creator of the world’s biggest art canvas hopes to help children in poorer countries
A book on Badri Narayan is a tribute — albeit a belated one — to an artist who did not enjoy the recognition ...
The country hasn’t had a quiet moment since the military seized power on February 1
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor