Centre to decide on e-auction method for iron ore sales soon

The panel that probed into illegal mining had recommended e-auction to ensure that finite resources are left for posterity

The Union mines ministry is likely to take a decision soon on the methodology for e-auction sale of key bulk minerals like iron ore and manganese ore.

The decision may be taken by the ministry at the upcoming meeting of the central empowered cum coordination committee where representatives of all mineral bearing states will participate. The meeting is scheduled for May 15.

On May 5, the ministry had issued letters to all concerned states, soliciting their views on adoption of e-auction mode for sale of iron ore and manganese ore.

The decision assumes significance since the M B Shah Commission that probed into illegal mining had recommended sale of the ores by e-auction to ensure that the finite resources are left for posterity.

The central ministry, in its Action Taken Report (ATR) to the Parliament on the Shah Commission findings, stated that the panel's recommendation will be examined in consultation with state governments and concerned central ministries.

In Odisha, the launch of e-auction for mineral sale has been delayed amid pending written consent from the Supreme Court appointed central empowered committee that was needed to enforce the process on the private lessees.

Though it is still not calculated how much revenue would be generated from e-auction, sale of iron ore alone through the electronic route is expected to fetch additional revenue of Rs 400 crore for the government annually.

MSTC Ltd and mjunction services, a 50:50 joint venture between Steel Authority of India Ltd (Sail) and Tata Steel, had evinced interest to offer e-auction services for mineral ores in the state. The decision of selection of the service provider was pending at the government level.

Apart from e-auction, the ministry meeting would check the progress made by state instituted task forces to curb illegal mining activities. So far, 22 mineral bearing states have constituted task forces.

Besides, the ministry has raised concern on piling up of mineral concession applications. Data released by the ministry shows there is huge pendency of mineral concession and renewal applications.

A total of 63,395 applications, inclusive of 643 applications for RP (reconnaissance permit) , 19891 for PL (prospecting license) and 42861 for ML (mining lease), are pending with the state governments. This apart, 265 lease/license execution cases and 2515 renewal applications are pending with the state governments.

The ministry noted that the pace of disposal of cases has been extremely slow and the pendency is quite high in almost all the mineral bearing states.

Karnataka tops the list with 19497 pending mineral concession applications followed by Rajasthan (13893) and Andhra Pradesh (7691).

According to quarterly report received till March 2013, 3705 applications are pending, including 37 applications for RP, 1943 for PL and 1725 for ML. Also, 250 mining lease applications are pending with the state government for renewal.