Lok Sabha Question No. 2737 (UNSTARRED), answered on 2018-08-02
Subject: Strengthening of Mineral Auction Regime
Ministry: MINES
Asked by: Shrirang Appa Barne, PRITAM GOPINATH MUNDE, DHARMENDRA YADAV, ANANDRAO  ADSUL, KUNWAR PUSHPENDRA SINGH CHANDEL, SHIVAJI ADHALRAO PATIL

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO. 2737 TO BE ANSWERED ON 02.08.2018

## STRENGTHENING OF MINERAL AUCTION REGIME

## 2737. SHRI SHRIRANG APPA BARNE:

DR. PRITAM GOPINATH MUNDE:

SHRI DHARMENDRA YADAV:

SHRI ANANDRAO ADSUL:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI ADHALRAO PATIL SHIVAJIRAO:

Will the Minister of MINES be pleased to state:

- (a)  whether  the  Union  Government  has  organized  the  4 th National  Conclave  on Mines  and  Minerals  recently  and  is  considering  a  proposal  in  coordination  with States  for  strengthening  the  mineral  auction  regime  as  well  as  help  in  expediting auctions and bring in greater participation from the stakeholders;
- (b) if so, the details thereof;
- (c) whether the Union Government has identified more mineral blocks for auction to increase domestic mineral production and if so, the details thereof, State-wise;
- (d) whether many State Governments have showcased the mineral blocks which are to be auctioned in the financial year 2018-19 in the first technical session and if so, the details thereof;
- (e)  whether  there  is  a  need  to  adopt  investor  friendly  approach  for  furthering  the development of mineral sector in the country including Bundelkhand; and
- (f) if so, the steps taken by the Union Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR MINES (SHRI HARIBHAI PARTHIBHAI CHAUDHARY)

- (a)  &  (b):  Yes,  Madam.  The  4 th National  Conclave  on  Mines  and  Minerals  was organized  by  Ministry  of  Mines  on  13.07.2018  at  Indore.  Technical  sessions  on showcasing mineral blocks to be auctioned by the State Governments in the financial year  2018-19  and  on  auction  handholding  and  post  auction  processes  were organized in the Conclave. The Ministry of Mines has worked in cooperation with the State Governments to strengthen the mineral auction regime and has facilitated the auction process, through its Institutions i.e. Geological Survey of India (GSI), Mineral

Exploration Corporation Ltd. (MECL) and Indian Bureau of Mines (IBM) and Central Public Sector Enterprises such as MECON Ltd. and MSTC Ltd. by providing initial handholding  support  to  the  State  Governments  for  Transaction  Advisory  Services, Differential Global Positioning System Survey, Geological Report preparation and eauction platform etc.

(c):  Ministry  of  Mines,  through  its  institutions,  GSI  &  MECL,  has  carried  out exploration of various mineral blocks and handed over the Geological Reports (GR) to respective State Governments to carry out auctions. The State-wise details are as under:

| State            | GRs handed over by GSI during 2014-17                                                                                                                                                                                                                                   | GRs handed over by MECL during 2016-18                                                               |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
| Andhra Pradesh   | 4 Blocks (2 Limestone, 1 Bauxite, 1 Graphite)                                                                                                                                                                                                                           | -                                                                                                    |
| Chhattisgarh     | 7 Blocks (3 Bauxite, 3 Limestone, 1 Gold)                                                                                                                                                                                                                               | 1 Limestone Block                                                                                    |
| Gujarat          | 3 Blocks (2 Limestone, 1 Bauxite)                                                                                                                                                                                                                                       | -                                                                                                    |
| Haryana          | 3 Base Metal Blocks                                                                                                                                                                                                                                                     | -                                                                                                    |
| Himachal Pradesh | 1 Base Metal Block                                                                                                                                                                                                                                                      | -                                                                                                    |
| Jharkhand        | 2 Bauxite Blocks                                                                                                                                                                                                                                                        | 1 Copper Block                                                                                       |
| Karnataka        | 14 Blocks (7 Gold, 4 Bauxite, 1 Limestone, 1 Iron Ore, 1 Copper Base Metal)                                                                                                                                                                                             | 4 Gold Blocks                                                                                        |
| Kerala           | 1 Bauxite Block                                                                                                                                                                                                                                                         | -                                                                                                    |
| Madhya Pradesh   | 17 Blocks (7 Gold, 6 Base Metal, 2 Manganese, 1 Limestone, 1 Graphite)                                                                                                                                                                                                  | 4 Blocks (3 Limestone, 1 Lead- Copper-Zinc)                                                          |
| Maharashtra      | 9 Blocks (3 Bauxite, 3 Base Metal, 1 Tungsten, 1 Manganese, 1 Copper & associated minerals)                                                                                                                                                                             | 2 Blocks (1 Tungsten, 1 Copper)                                                                      |
| Meghalaya        | 7 Limestone Blocks                                                                                                                                                                                                                                                      | -                                                                                                    |
| Odisha           | 16 Blocks (8 Iron Ore, 5 Manganese, 3 Bauxite)                                                                                                                                                                                                                          | 1 Iron Ore Block                                                                                     |
| Rajasthan        | 30 Blocks (14 Base Metal, 10 Gold, 2 Lead & Zinc, 1 Limestone, 1 Silver, 1 Copper & Zinc, 1 Tungsten & Lithium)                                                                                                                                                         | -                                                                                                    |
| Tamil Nadu       | 4 Blocks (2 Molybdenum, 1 Limestone, 1 PGE)                                                                                                                                                                                                                             | 4 Molybdenum Blocks                                                                                  |
| Telangana        | 3 Blocks (2 Gold, 1 Iron Ore)                                                                                                                                                                                                                                           | 3 Limestone Blocks                                                                                   |
| Uttar Pradesh    | 3 Andalusite Blocks                                                                                                                                                                                                                                                     | -                                                                                                    |
| Total            | 124 Blocks (27 Base Metal, 27 Gold, 18 Bauxite, 18 Limestone, 10 Iron Ore, 8 Manganese, 3 Andalusite, 2 Graphite, 2 Lead & Zinc, 2 Molybdenum, 1 Copper Base Metal, 1 Tungsten, 1 Copper & associated minerals, 1 Silver, 1 Copper & Zinc, 1 Tungsten & Lithium, 1 PGE) | 20 Blocks (7 Limestone, 4 Gold, 4 Molybdenum, 2 Copper, 1 Iron Ore, 1 Tungsten, 1 Lead- Copper-Zinc) |

(d): Yes, Madam. The State Governments of Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana gave presentations on the mineral blocks to be auctioned by them in financial year 2018-19. The details of these mineral blocks are as under:

| State          | Mineral blocks showcased in 4 th National Conclave on Mines and Minerals                                                                                                                                                                            |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Andhra Pradesh | 7 Blocks (6 Limestone, 1 Gold)                                                                                                                                                                                                                      |
| Assam          | 4 Limestone Blocks                                                                                                                                                                                                                                  |
| Chhattisgarh   | 7 Blocks (5 Bauxite, 2 Limestone)                                                                                                                                                                                                                   |
| Gujarat        | 3 Blocks( 2 Limestone and Marble & 1 Limestone)                                                                                                                                                                                                     |
| Jharkhand      | 18 Blocks (4 Bauxite, 4 Limestone, 3 Graphite, 2 Iron Ore, 2 Emerald, 1 Copper, 1 Manganese, 1 Limestone/ Dolomite                                                                                                                                  |
| Karnataka      | 8 Iron Ore Blocks                                                                                                                                                                                                                                   |
| Madhya Pradesh | 13 Blocks (6 Limestone, 3 Base Metal, 2 Gold, 1 Manganese, 1 Bauxite & Laterite)                                                                                                                                                                    |
| Maharashtra    | 13 Blocks (6 Bauxite, 3 Limestone, 2 Copper, 1 Iron Ore, 1 Manganese)                                                                                                                                                                               |
| Odisha         | 9 Blocks (4 Iron Ore, 3 Limestone, 1 Manganese, 1 Iron Ore & Manganese)                                                                                                                                                                             |
| Rajasthan      | 16 Blocks (10 Limestone, 3 Copper, 2 Copper & associated minerals, 1 Base Metal)                                                                                                                                                                    |
| Telangana      | 3 Limestone Blocks                                                                                                                                                                                                                                  |
| Total          | 101 blocks (42 Limestone, 15 Iron Ore, 15 Bauxite, 6 Copper, 4 Manganese, 4 Base Metal, 3 Gold, 3 Graphite, 2 Emerald, 2 Copper & associated minerals, 2 Limestone and Marble, 1 Iron Ore & Manganese, 1 Limestone/ Dolomite, 1 Bauxite & Laterite) |

- (e)  &  (f):  Ministry  of  Mines  has  endeavoured  to  institutionalize  an  investor  friendly regime  for  the  development  of  mining  sector  in  the  country.  Ministry  of  Mines developed  the  model  tender  document  that  could  be  adopted  by  States  which contains  GR,  Information  Memorandum  and  Mines  Development  and  Production Agreement of mineral blocks notified for auction. This information is available to the investors at the start of auctions to ensure transparency. The Mineral Auction Rules have been amended by the Ministry of Mines vide notification dated 30.11.2017 to make  the  auction  process  simpler  and  to  help  the  States  auction  mineral  blocks quickly.

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