Lok Sabha Question No. 2604 (UNSTARRED), answered on 2018-08-02
Subject: Simplification of Auction Rules
Ministry: MINES
Asked by: K. ASHOK KUMAR

## GOVERNMENT OF INDIA MINISTRY OF MINES LOK SABHA UNSTARRED QUESTION NO. 2604

TO BE ANSWERED ON 02.08.2018

## SIMPLIFICATION OF AUCTION RULES

2604. SHRI K. ASHOK KUMAR:

Will the Minister of MINES be pleased to state:

- (a) whether it is a fact that the Government has significantly eased the auction rules in  a  bid  to  rekindle  investor  interest  in  a  process  that  has  been  marked  by  failed auctions;

(b) if so, the details thereof;

(c) whether it is also true that 33 blocks of mineral have been successfully auctioned since  May,  2015  after  introduction  of  Mineral  Auction  Rules  and  if  so,  the  details thereof; and

(d)  whether  it  is  also  true  that  as  many  as  60  auctions  have  flopped  for  lack  of interest and if so, the details thereof?

## ANSWER

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

- (a)  &  (b):  Yes,  Madam.  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. The major amendments  in  the  rules  include  more  flexibility  to  State  Governments  in  auction process, relaxation in net worth requirement for increased participation of bidders in auction of mines, relaxation in disposal of up to twenty five percent of total mineral excavated in the previous financial year in case of mines which have been reserved for specified end use and adjustment of upfront payment in full at the earliest against the revenue share.
- (c)  &  (d):  Since  the  introduction  of  auction  regime,  87  mineral  blocks  have  been notified for auction out of which 43 mineral blocks have been successfully auctioned as on 26.07.2018 with estimated resources of Rs 1,99,782 crores. The details of the mineral blocks successfully auctioned and annulled are as under:

| State          | Successful                                                                                   | Annulled                                                                                                          |
|----------------|----------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
| Andhra Pradesh | 3 Limestone Blocks                                                                           | 2 Limestone Blocks                                                                                                |
| Chhattisgarh   | 5 Blocks (4 Limestone, 1 Gold)                                                               | 2 Limestone Blocks                                                                                                |
| Gujarat        | 3 Limestone Blocks                                                                           | 5 Limestone Blocks                                                                                                |
| Jharkhand      | 5 Blocks (2 Limestone, 2 Gold, 1 Iron Ore)                                                   | -                                                                                                                 |
| Karnataka      | 7 Iron Ore Blocks                                                                            | 7 Iron Ore Blocks                                                                                                 |
| Madhya Pradesh | 6 Blocks (3 Limestone, 1 Graphite, 1 Iron Ore, 1 Diamond)                                    | 5 Blocks (4 Limestone, 1 Bauxite)                                                                                 |
| Maharashtra    | 3 Blocks(1 Limestone, 1 Manganese, 1 Bauxite)                                                | 14 Blocks (4 Bauxite, 3 Limestone,2 Iron Ore, 2 Copper, 2 Tungsten, 1 Manganese)                                  |
| Odisha         | 5 Blocks (3 Iron Ore, 1 Manganese, 1 Limestone)                                              | 4 Limestone Blocks                                                                                                |
| Rajasthan      | 6 Limestone Blocks                                                                           | 5 Blocks (4 Limestone Blocks, 1 Copper & associated minerals)                                                     |
| Total          | 43 Blocks (23 Limestone, 12 Iron Ore, 3 Gold, 2 Manganese, 1 Graphite, 1 Bauxite, 1 Diamond) | 44 Blocks (24 Limestone, 9 Iron Ore, 5 Bauxite, 2 Copper, 2 Tungsten, 1 Manganese,1 Copper & associated minerals) |

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