Mines auction in Maha, Gujarat, Rajasthan draws few takers

The mines auction in Maharashtra, Gujarat and Rajasthan has failed to find many interested parties, forcing the state governments to talk to the industry and working on re-auctioning the blocks.
As of January 15, Gujarat has put 5 limestone blocks for auction, followed by Gujarat putting three limestone blocks, while Maharashtra has offered a block each of limestone, tungsten, iron ore and bauxite.
"Rajasthan, Gujarat and Maharashtra are not getting adequate responses for the auction. Now, the state governments are talking to the industry on how to do it again," Union Mines Secretary Balvinder Kumar told reporters here when asked about the response to the auctions.

In total, states have so far put 46 blocks containing minerals such as iron ore, bauxite, limestone, gold and tungsten, for auction.
Kumar added that two small blocks of limestone have been auctioned in Jharkhand, making it the first state to auction a mine.
Besides, on March 18-19, one block of limestone will be put for auction by Chhattisgarh, he added.

"In the current ongoing auction 46 blocks have been offered and an additional 15-20 blocks are also there with states, but they are waiting to see the response of the blocks that are already on auction. In one or two months they will come," Kumar said.

Going ahead, about 50 blocks will come for auction. About 170 blocks will be available for auction in 2-3 years. This will help to address the subdued sentiment in the mines sector, he added.
The Centre expects the 12 mineral-producing states to offer as many as 70 mines in the first phase of auctions, expected to be concluded by March.
In March last year, Parliament passed the Mines and Minerals (Development and Regulation) Amendment Act, 2015, which paved the way for states to auction iron ore and non-coal mineral mines.