Auctioning of mining rights may start with 199 leases: Tomar

This auction process will not be applicable to coal, lignite and atomic minerals

The Union government was likely to auction 199 mines — of various minerals such as limestone, manganese, iron ore and bauxite — in the first phase of auctions in the wake of the new ordinance in this regard, said Union Mines Minister Narendra Singh Tomar.

The government promulgated the Mining & Mineral Development Regulatory Amendment Ordinance, 2015, on January 12. The auction process will not apply to coal, lignite and atomic minerals.

Addressing a press conference after presiding over a meeting with state mines ministers, Pradhan said these 199 mines were across states and the leases to these would be auctioned as soon as possible. Eleven states were part of the meeting.

“In the second session, there will be secretary-level talks to decide a single way forward,” the minister added.

Under the new law, all mineral concessions will be granted through only the auction route. "We have started preparing the rules of ordinance and auction paper. As soon as they are ready, we will send it to the states," the minister said.

Commenting on the demand of certain states which are asking for a larger share for their District Mineral Foundations (DMF), the minister deflected the demand saying that that there will always be two opinions after the promulgation of ordinance.

"The government has to look after everybody's interests. Not only we are trying to boost mining industry and employment, but we are also trying to safeguard the interests of people and locations being affected by mining. The present provisions are strong enough to protect everybody's rights," he added.

Tomar refused to comment on the threat from Odisha government which has said that it will go to court in case their demands are not met.

"In democracy, everybody has rights. But I believe that in an era of transaparecy revolution, this ordinance will prove to be a milestone and everybody should stand in its support," he said.

Answering the question over the sword hanging over Posco, the minister said that after the promulgation of ordinance, there are many issues such as this which he considers as 'finished'.

"The auction route will bring some transparency but somebody may get hurt too. We have to make a choice: we want transparency or profit. We have to chose one way," he said.