The draft regulations on the auction of mines including iron ore have been prepared and will be sent to states to seek their views within a week, Mines and Steel Minister Narendra Singh Tomar said today.
"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.
Tomar further said, "Since mines is a state subject, auctioning of mines will be conducted by states in which the role of the Centre would be limited to framing the rules to be followed in the process."
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.
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.
Tomar said the states will not require approval from the central government for auctioning, "this is a state subject and they will deal with it."
The minister added that if the states desire they can set aside mines for their PSUs besides participating in the auction process.
