"I am of the opinion that whenever there is a national asset (like mining) they should be auctioned rather than giving it to the person who applies for it," Parrikar told reporters on the sidelines of the oath-taking ceremony of Goa Governor.
Though he is yet to consult his colleagues or party on the issue of auctioning, Parrikar said the transparency in the allocation of mining leases would be spelt properly in the state mining policy that would be ready by May-end or June this year.
The chief minister said he is helpless in case of the existing leases, which were given to the owners when the Portuguese ruled over Goa.
"There are historical reasons why Goa has mining leases", he said, adding that after the Portuguese left, the leases should have been handed over to the government.
Goa is the largest exporter of iron ore in the country. As per the record available with the mines and geology department, there are 90 active mining leases, which tapped 43 million metric tonnes of iron ore during the last financial year.
The state was also in the news for rampant illegal mining by night traders.
The illegal mining scam was estimated to be Rs 4,000 crore over the last five years by the Public Accounts Committee headed by Parrikar.