Lok Sabha Question No. 1443 (UNSTARRED), answered on 2018-07-26
Subject: Auction of Mineral Blocks
Ministry: MINES
Asked by: K. ASHOK KUMAR

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO. 1443 TO BE ANSWERED ON 26.07.2018

## AUCTION OF MINERAL BLOCKS

## 1443. SHRI K. ASHOK KUMAR:

Will the Minister of MINES be pleased to state:

- (a)  whether  it  is  a  fact  that  the  Government  is  looking  to  auction  more  than  100 blocks over the next 15 months with a potential value of about Rs. 2 lakh crore and if so, the details thereof;
- (b) whether it is also true that the Government aims to spur increased interest in the upcoming auctions of 34 mineral blocks that are still  in  the  pipeline  and  if  so,  the details thereof;
- (c)  whether  it  is  also  true  that  the  new  norms  also  have  a  clause  to  discourage miners from squatting on mine leases; and
- (d) if so, the details thereof?

## ANSWER

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

- (a) & (b) As per the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 and the Rules framed there under, the State Governments are devolved upon the  responsibility  to  carry  out  auction  of  mineral  blocks  in  accordance  with  the prescribed law. As per the information provided by the State Governments in various meetings, total of 102 mineral blocks are proposed to be put on auction in the year 2018-19.  The estimated value of resources in the 43 mineral blocks auctioned so far is about Rs. 2 Lakh Crores. The State-wise details of the minerals blocks put up on auction or proposed to be put up on auction by the States in 2018-19 are as under:

| State                          | Mineral Blocks presently under Auction                                                                               | Mineral Blocks in Pipeline for Auction in 2018-19   |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
| 7 Blocks (6 Limestone, 1 Gold) | -                                                                                                                    | Andhra Pradesh                                      |
| -                              | 11 Blocks (7 Bauxite, 4 Limestone)                                                                                   | Chhattisgarh                                        |
| -                              | 8 Blocks (5 Limestone Blocks, 3 Bauxite)                                                                             | Gujarat                                             |
| 3 Graphite Blocks              | 20 Blocks (6 Graphite, 4 Limestone, 3 Bauxite, 2 Iron Ore, 2 Emerald, 1 Manganese, 1 Copper, 1 Dolomite / Limestone) | Jharkhand                                           |

| Karnataka         | 8 Iron Ore Blocks                                                                  | 8 Blocks (7 Manganese & Iron Ore, 1 Iron Ore)                                                                                                                                                            |
|-------------------|------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -                 | 13 Blocks (6 Limestone, 3 Zinc, 2 Gold, 1 Bauxite, 1 Manganese)                    | Madhya Pradesh                                                                                                                                                                                           |
| -                 | 13 Blocks (6 Bauxite, 3 Limestone, 2 Copper, 1 Iron Ore, 1 Manganese)              | Maharashtra                                                                                                                                                                                              |
| 2 Iron Ore Blocks | 8 Blocks (3 Limestone, 2 Iron Ore, 1 Manganese, 1 Bauxite, 1 Iron Ore & Manganese) | Odisha                                                                                                                                                                                                   |
| -                 | 15 Blocks (10 Limestone, 4 Copper, 1 Copper & Associated Metal)                    | Rajasthan                                                                                                                                                                                                |
| -                 | 3 Molybdenum Blocks                                                                | Tamil Nadu                                                                                                                                                                                               |
| -                 | 3 Limestone Blocks                                                                 | Telangana                                                                                                                                                                                                |
| Total             | 20 Blocks (10 Iron Ore, 6 Limestone, 3 Graphite, 1 Gold) 6                         | 102 Blocks (38 Limestone, 21 Bauxite, 8 Iron Ore & Manganese, Iron Ore, 7 Copper, 6 Graphite, 4 Manganese, 3 Zinc, 3 Molybdenum, 2 Emerald, 2 Gold, 1 Copper & Associated Metal, 1 Dolomite / Limestone) |

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.

(c) & (d) Yes, Madam. As per the provisos inserted in sub-rule (6) of rule 10 of the Mineral  Auction  Rules,  it  has  been  stipulated  that  no  Mining  Lease  Deed  shall  be executed on expiry of a period of three years from the date of the letter of intent, and the letter of intent shall be invalidated leading to annulment of the entire process of auction:

Provided further that the State Government may allow a further period of two years for  execution  of  the  Mining  Lease  Deed  if  the  reasons  for  delay  were  beyond  the control of the preferred bidder.

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