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The first phase of non-coal mineral auction will begin by October or November, said Mines Minister Narendra Singh Tomar on Friday.
And, a committee under the additional secretary in the ministry, with representatives of private and public sector companies, will be formed to recommend a national mineral exploration policy.
Tomar did not say how many blocks might be auctioned. “Auctions have to be done by the states. They are preparing themselves on the field. As soon as it is over, they would begin the process,” he said.
“After discussing various issues with 12 (mineral-bearing) states, we have come to the conclusion that the first phase of mineral auction will begin by this time period,” added Balvinder Kumar, the ministry’s secretary.
The minister and the secretary were addressing a mining leaders roundtable, organised by Confederation of Indian Industry.
The secretary added the second phase of auction, for which the states have identified the blocks, will take place in a year.
“The committee will create an appropriate policy to encourage participation of the private sector in exploration. Our goal is to complete 100 per cent regional exploration at the earliest possible, to assess the mineral wealth of the country,” said the minister.
Since 1947, he said, India had done only 10 per cent of regional exploration. Other countries with similar geological endowment, such as Australia, had completed their exercise.
Tomar said the government had done away with the policy of selling detailed exploration reports of state-owned Mineral Exploration Corporation (MECL).
“MECL has prepared 58 geological reports of detailed exploration, which will be offered free of cost to states, to aid and expedite the auction process,” he said. According to a mines ministry press release, the government has spent close to Rs 350 crore as promotional grant for detailed exploration of 155 blocks of various minerals, and established about 5,600 million tonnes of mineral resources through MECL.
Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill in March, paving the way for auction of these mines. As mining is a state subject under the Constitution, auctions will be conducted by the states and the central government’s role will be limited to framing the rules to be followed in the process.
On the earlier fund-gap problem, Tomar added the National Mineral Exploration Trust, made feasible by the new mining law, will have an annual kitty of Rs 300-500 crore, more than the current cumulative spending of Centre and states on exploration.
He said the government had notified seven public sector undertakings to undertake prospecting work, obviating the need for them to obtain a prospecting licence.
