Chhattisgarh, MP, Raj to start auction by Nov: Mines Secy

Auction of mines bearing minerals such as iron ore, bauxite and limestone will start in 4-5 states, including Chhattisgarh, Madhya Pradesh and Rajasthan by November, a top mines ministry official said today.
Besides, the 12 mineral bearing states will start the auction of some 82 mines, which will be called Phase I, by December this year, Mines Secretary Balvinder Kumar said.
"Mines auction will start in 4-5 states including Madhya Pradesh, Gujarat, Chhattisgarh and Rajasthan, by October or November. We have been pursuing this with the states and I have visited eight states since July 1," he said at the AGM of industry body Federation of Indian Mineral Industries (FIMI).

Kumar added that 82 blocks in Phase I are expected to go under the hammer by December.
Moreover, states have also identified 96 blocks, which will be taken up in Phase II. This phase will start once Phase I gets over. In many cases, these 96 blocks need to have G1 and G2 level of exploration reports and most of them are in G3 and G4 level, Kumar said.
In March, the government passed the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2015, which paves the way for states to auction iron ore and non-coal mineral mines.

Last month, Steel and Mines Minister Narendra Singh Tomar told PTI that Centre was working with states to start the auction process by year-end for about 200 mines containing minerals such as iron ore, bauxite and limestone.

Mines Ministry has advised states that they can consider engaging SBI Capital, a wholly-owned subsidiary of public sector lender State Bank of India, as a transaction adviser, Kumar said.
It also suggested to consider engaging state-run metal scrap trading firm MSTC, which provides the platform for coal auctions, he added.
On the District Mineral Foundation (DMF), Kumar said: "We will notify the guidelines as well as the miners' contribution in the next 2-3 days. Most states are ready with the DMF rules and are waiting for the model guidelines and contribution of the miners."
Centre is of the view to give a "reasonable" amount for the contribution to be paid by the miners to the DMF fund, even as the states have demanded that the contribution should be higher, he added.

The MMDR Act mandates setting up of a DMF in districts where mining takes place, for the development of the area.
According to the MMDR Act, the miners' contribution to DMF should not exceed one-third of the royalty rate for new concessions (through mines auction) and not exceed the royalty in respect of existing concessions.