Odisha government has identified at least 16 mines for auction in the first phase of bidding and the process will begin by end of October, Balvinder Kumar Secretary with Ministry of mines said today.
"The Mines and Minerals Development Regulations Act (MMDR Act) has been amended. Now, we are requesting all states to go for auction of plots/blocks in accordance with the amended law. We are very happy that the Odisha government has taken very proactive steps in this regard," Kumar said.
"The Odisha government has identified 16 blocks for the purpose. They are optimistic of putting them to auction by October," he told media persons after a meeting with Chief Secretary G C Pati here.
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Stating that the whole country is looking at which state is going to put these blocks on auction, Kumar said Odisha has can earn a lot from the process.
Pati said the state government will very soon issue a notification for auction of mines in the state.
"The state has already begun Differential Global Positional System survey and other allied works like appointment of consultants for preparation of bid documents required before auctioning of mines blocks. The process has started and we are hopeful that by the end of October auctioning can begin," he said.
Asked about the nature of mines to be put for auction, the chief secretary said only those blocks which have been explored up to G2 and G3 levels can be put up for auction for exploration purposes. Blocks in which no exploration has been done cannot be put up for auction.
The 16 blocks listed for auction in the first phase have been selected on the basis of these rules, he said.
The state government has issued a gazette notification forming a high-level committee to advise the government on the issue of auctioning mines in the state, besides finalising the modalities for the auction process as per the provisions of the new MMDR Act.
While the development commissioner is chairman of the committee, the secretaries of Mines and Industries departments are among its seven members. The committee will also advise the government on the sectors that need to be given priority during reservation or auction of mines.
On the District Mineral Foundation, Pati said: "The rules framed for the DMF have been approved by the state government. It's now being examined by the Law department and after its final drafting, it will notified.