Lok Sabha Question No. 29 (UNSTARRED), answered on 2022-12-07
Subject: Auction of Non-fuel Mineral Blocks
Ministry: MINES
Asked by: Rajveer (Raju Bhaiya) Singh, Vinod Kumar Sonkar, Raja Amareshwara Naik, Sukanta Majumdar, Bhola Singh

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 29

ANSWERED ON 07.12.2022

## AUCTION OF NON-FUEL MINERAL BLOCKS

29. SHRI RAJVEER SINGH (RAJU BHAIYA): SHRI VINOD KUMAR SONKAR: SHRI RAJA AMARESHWARA NAIK: DR. SUKANTA MAJUMDAR: SHRI BHOLA SINGH:

Will the Minister of MINES be pleased to state:

- (a) whether the Government plans to bring policy changes to boost mining production and if so, the details thereof;
- (b) the total number of non-fuel mineral blocks auctioned during last three years;
- (c) whether it is a fact that auctions received bids higher than the estimated value of reserve and if so, the details thereof, block-wise;
- (d) the details of auctioned leases that have been surrendered;
- (e) the details of the Government earnings from the auction of non-fuel mineral blocks during the last two years; and
- (f) the details of the production output of auctioned mines in comparison to agreedupon outputs as per their Mine Development and Product Plans, mine-wise?

## ANSWER

## THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

- (a):       The Ministry of Mines has amended the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957) through the MMDR Amendment Act, 2021 with effect from 28.03.2021 with the objective of inter  alia increasing mineral production, time-bound operationalization of mines, investment in the mining sector, maintaining continuity in mining operations after the change of lessee, increasing the pace of exploration and auction of mineral resources.
- (b):       As of 30.11.2022, 121 non-fuel mineral blocks have been auctioned during the last three years (FY 2020-21 to 2022-23) .
- (c):        As  per the  Mineral Auction Rules, 2015, the Reserve price is the minimum percentage  of  the  value  of  mineral  dispatched  which  is  specified  by  the  State Government. Auction bids are a percentage of the value of mineral dispatched which is equal to or above the reserve price which the successful bidder shall pay to the State Government. In some cases, bids have been received in excess of 100% of the Value of Estimated Resources (VER). A State-wise Summary of the auctioned mines where bids received in excess of 100% of VER is at Annexure-I.

(d):        As per the Mines  and  Minerals  (Development  and  Regulation)  (MMDR) Act, 1957  and the Rules  framed  thereunder, the State  Governments  are  empowered  to grant mineral concessions for the minerals located within their respective jurisdiction. Accordingly, information regarding the surrender of mines is also maintained by the State Governments.

(e):       As per the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 and the Rules framed thereunder, the State Government are empowered to grant mineral concessions for the minerals located within their respective jurisdiction and to collect the revenue generated thereupon. Auction revenue will be accrued to the State Government  once  the  production  &  dispatch  of  minerals  start  from  the  auctioned mines. As per the information received from the State Governments, revenue accrued from the operationalized auctioned mines in the last 2 years is at Annexure-II.

(f):       Mine Development and Product Agreement (MDPA) is signed by the successful bidder with the State Government upon obtaining all consents, approvals, permits, no objections and the like as may be under applicable laws for commencement of mining operations.  Accordingly,  the  details  regarding  the  production  output  of  auctioned mines  in  comparison  to  agreed-upon  outputs  as  per  MDPA  is  maintained  by  the respective State Governments.

*****

## A Statewise Summary of the auctioned mines where bids received in excess of 100% of VER

| S No   | State          |   Total Auctioned Mines since 2015 |   Auctioned Mines where bids are in excess of 100% of VER |
|--------|----------------|------------------------------------|-----------------------------------------------------------|
| 1      | Andhra Pradesh |                                 20 |                                                         1 |
| 2      | Chattisgarh    |                                 19 |                                                         5 |
| 3      | Gujarat        |                                 12 |                                                         1 |
| 4      | Jharkhand      |                                 07 |                                                         1 |
| 5      | Karnataka      |                                 34 |                                                         9 |
| 6      | Madhya Pradesh |                                 32 |                                                         9 |
| 7      | Maharashtra    |                                 28 |                                                         5 |
| 8      | Odisha         |                                 40 |                                                        20 |
| 9      | Rajasthan      |                                 22 |                                                         6 |
| 10     | Uttar Pradesh  |                                 02 |                                                         0 |
| Total  | Total          |                                216 |                                                        57 |

## Annexure II

## Revenue from the auctioned operationalized mines in the last 2 years:

| States         | Revenue generation from the auctioned mines which have started production (in Cr.) (2021-22 to 2022-23)   |
|----------------|-----------------------------------------------------------------------------------------------------------|
| Odisha         | 40644.81                                                                                                  |
| Karnataka      | 2093.79                                                                                                   |
| Andhra Pradesh | 17.79                                                                                                     |
| Chhattisgarh   | 0.92                                                                                                      |
| Total          | 42,757.31                                                                                                 |