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Govt to auction 5 mineral blocks with 667 MT reserves in Gujarat, Karnataka

The identified blocks would be auctioned along with other blocks without pre-embedded clearances

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mineral blocks auction | Gujarat | Karnataka

Press Trust of India  |  New Delhi 

India is a mineral-rich country (its geological potential is similar to Western Australia) but mines only 2 per cent of its potential
So far, 97 mining leases have been allocated through auctions since 2015.

Starting Monday, the government will auction five mineral blocks in and having reserves of 667.2 million tonnes.

The development assumes significance in the wake of the Centre asking each state having mineral resources to identify at least five new mining projects for auction with pre-embedded clearance on a pilot basis, with a view to expediting the sale process as well as operationalisation of the blocks.

While the auction of one mineral block in will begin on Monday, the sale of other four mines will commence on Thursday and last till July 8, according to government documents.

The notice inviting tender for Kannur (Wadi Area) limestone block in was floated in November, while that for four limestone mines in was out on March 19.

The had recently released guidelines for the auction of mineral blocks with pre-embedded clearances as it explored ways to address the key issue of delay in mining production due to lack of various approvals such as forest and environment permissions.

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The identified blocks would be auctioned along with other blocks without pre-embedded clearances.

Under the guidelines, the Centre has asked states to set up a project monitoring unit (PMU) to complete the preparatory work for obtaining requisite clearances, approvals and related work. The unit would obtain all the clearances for starting a mining project.

Finance Minister Nirmala Sitharaman had earlier announced various structural reforms in the mining sector as part of the over Rs 20 lakh crore stimulus package to boost growth and job creation.

She had announced the auction of 500 blocks and the introduction of a seamless composite exploration-cum-mining-cum-production regime.

So far, 97 mining leases have been allocated through auctions since 2015.

First Published: Sun, June 28 2020. 15:55 IST
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