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Mining ministers from various States are expected to brainstorm, later this week, in Goa on how to take forward the auctioning of merchant mining leases expiring in 2020.
The auction process is now mandated in law due to an amendment to the Mines and Minerals (Development and Regulation) Act enforced by the present government. The law mandates that all grant of mineral concessions should be through auctions. This will be a different approach to the earlier nomination methodology, which was adopted prior to the NDA-II Government..
As per the amendment, existing mining leases would be deemed to be extended from the date of their last renewal up to March 31, 2030 (in the captive miners) and till March 31, 2020 (for the merchant miners).
An official statement said that Ministers and officials from 21 major mineral-rich States will participate in the meeting and discuss the ways to strengthen the mining sector in India. Mines whose leases expire in 2020 will have to be auctioned with sufficient time in buffer. This will be to ensure a seamless transition from erstwhile lease holders to new lessees so that the production of minerals in not adversely affected. The road map for carrying out exploration as per norms, conducting auction with buffer time for annulments and timely grant of clearances needs to be formulated, the statement added.
According to the agenda notes for the meeting, 88 major mineral blocks have been notified by 9 States for auction and 33 blocks have been successfully auctioned up to January 1.
The auctioned blocks have an estimated value of mineral resources over ₹1,69,391 crore. The total estimated revenue to the State government over the lease period stands at ₹1,28,388 crore. The additionality to States due to bringing in of the auction process shall be in excess of ₹99,000 crore, according to the statement.
The utilisation of the Mining Surveillance System (MSS) for monitoring of mining activities to curb the incidences of illegal mining will also be discussed.
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