"The draft rules and the regulations have been finalised and will be sent to the states for suggestions within a week. The states will be given a time-frame within which they can reply," Tomar said.
Mines and Minerals (Development and Regulation) Amendment Act, 2015, empowers the Centre to prescribe terms and conditions and procedures for bidding which include production sharing or royalty payment or a combination of both.
The government has roped in investment banker SBI Capital Markets to suggest rules for auctions as well as the bidding parameters.
The Mines Ministry has already identified 199 mines which contain minerals like iron ore, bauxite and manganese ore that can be allocated through the auction route. These are located in mineral-rich states such as Karnataka, Madhya Pradesh, Odisha, Gujarat and Maharashtra.
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The minister further said that the five PSUs including Sail and NMDC may be engaged in the process of exploration of mines besides Geological Survey of India.
The minister added that if the states desire they can set aside mines for their PSUs besides participating in the auction process.