Mines auction: States to garner revenues over Rs 35,500 crore

States will garner revenues of around Rs 15,070 crore from the first phase of the auction

After a lackluster start earlier this year, mines auction is gathering pace with states set to get over Rs 35,500 crore as buyers lapped up 11 mines containing minerals such as iron ore, gold, and limestone.

The first phase of auction saw miners bid for 7 mines — five limestone mines and one iron ore and one gold mine. States will garner revenues of around Rs 15,070 crore from the blocks over a lease period of 50 years. The estimated value of these reserves is around Rs 31,125 crore.

In the second round, states have so far auctioned 4 mines, three iron ore and 1 of limestone. Through this, the revenue that is set to accrue is to the tune of Rs 20,515 crore. The estimated value of reserves is about Rs 24,325 crore.

"Auctions are picking up pace. The Industry is now bidding for mines. So far 11 mines have been successfully auctioned and through this states will garner revenues of more than Rs 35,500 crore," a senior government official said.

The total estimated value of reserves in these mines is around Rs 55,550 crore, he added.

In the second phase of mines auction, which started last month, Karnataka, Andhra Pradesh, Madhya Pradesh, Rajasthan, and Jharkhand have offered a total of 29 mines.

Of these 29 mines, 14 are of iron ore, 12 of limestone and 1 block each of gold, diamond, and copper.

During the first round held in the last financial year, states offered nearly 47 mines bearing minerals such as gold, iron ore, bauxite, and limestone.

Analysts expect that there will be a good response for iron ore mines, and gold and diamond as well.