The Ministry of Mines, Govt. of India has projected to auction 5-6 mineral blocks, including bauxite mines, in the central state of India, Madhya Pradesh over the next three months, as per a government official.
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However, the 11 blocks that were up for sale by the state recently, received a response for only five blocks. The remaining six mines were resulted unresponsive from bidders.
The official said: "The six blocks had no bidders as they are commercially not viable and do not have very good market value.”
He also added: “Of these mines likely to be auctioned in the three months’ time in Madhya Pradesh, there will be two bauxite blocks, one iron ore and one rock phosphate.”
Total revenue from the blocks to the government over 50 years is expected at INR 28,415.60 crore.
The Government of India had already delivered the message to each state having mineral resources to identify at least five new mining projects for auction with pre-embedded clearance on a pilot basis to expedite the sale process as well as the operationalization of the blocks.
The Ministry of Mines has also released guidelines for the auction of mineral blocks with pre-embedded clearances as it explores ways to address the key issue of delay in mining production due to lack of various approvals such as forest and environment permissions.
The identified blocks would be auctioned in parallel with other blocks without pre-embedded clearances.
Under the guidelines, the government has urged the states to set up a project monitoring unit (PMU) to complete the preparatory work for obtaining requisite clearances, approvals and related work, as the unit would secure all the clearances for starting a mining project.
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