 "Mineral block auctions to yield Rs 59,639 crore revenue")
Auctions of 17 mineral blocks across seven states would yield a total revenue of Rs 59,639 crore for the whole lease period.
As per the estimates of the Union Mines ministry, these blocks, after auctions, have already fetched incremental revenue of Rs 47,551 crore. Until the end of November this year, the 17 mineral blocks have gone under the hammer in Andhra Pradesh, Karnataka, Jharkhand, Madhya Pradesh, Rajasthan, Odisha and Chhattisgarh.
Auctions of mineral blocks have kicked off under the amended Mines and Minerals (Development and Regulation) (MMDR) Act, doing away with the practice of discretionary allotments.
A report on achievements of the mining sector by the ministry and the Department of Industrial Policy & Promotion (DIPP) says major policy interventions to promote exploration and enhance private sector participation has aided in mining sector's growth. Mineral production logged 9% growth in FY16, helped by increased production of iron ore (25.85%) and chromite (25.9%). Exports of iron ore and concentrates of copper and chrome also rose significantly last financial year.
The amended MMDR Act has established the National Mineral Exploration Trust (NMET) wherein leaseholders are needed to contribute a sum equivalent to 2% of the royalty to the NMET. Under NMET, Rs 201 crore has been deposited at the end of May 2016. The Centre has approved 13 mineral exploration projects in the states of Madhya Pradesh, Odisha, Maharashtra, Chhattisgarh, Karnataka and Jharkhand.
The Centre has rolled out many fiscal incentives for the mining sector — waiver of 30% export duty on low-grade iron ore fines and lumps, cutting export duty on bauxite from 20% to 15%, doing away with export duty on iron ore pellets and reducing export duty to Japan and South Korea on iron ore of NMDC origin from 30% to 10%.
The report states FDI inflows to mining sector between April 2014 to March 2016 zoomed 1606% to $1.2 billion compared with $70.62 million recorded during April 2012 to March 2014. Major FDI inflows have come from Sesa Sterlite, Essel Mining & Industries Ltd, Rio Tinto Exploration India Ltd and Thiess Minecs India Pvt Ltd.