Lok Sabha Question No. 2737 (UNSTARRED), answered on 2016-03-14
Subject: Online Auction of Mines
Ministry: MINES
Asked by: KAMAL NATH, NEIPHIU RIO

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2737 TO BE ANSWERED ON 14.03.2016

## ONLINE AUCTION OF MINES

## 2737 SHRI KAMAL NATH: SHRI NEIPHIU RIO:

Will the Minister of MINES be please to state:

- (a) Whether there was inadequate response to the recent online auction of non-coal mines in the country;
- (b) If so, the details thereof and the reasons therefore, mine-wise;
- (c) Whether  the  Government  has  consulted  the  State  Government  and  the  Federation  of Indian Mining Industries before initiating the e-auction process, if so, the details and the outcome thereof; and
- (d) The corrective steps taken by the Government to make e-auction of mines successful?

## ANSWER

## THE MINISTER OF STATE FOR MINES AND STEEL (SHRI VISHNU DEO SAI)

(a) to (d):

Auction results in respect of six non-coal mines in the States of Jharkhand, Chhattisgarh and Odisha indicate overwhelming success. The details are annexed . However, in absence of requisite  number  of  bidders,  for  the  blocks  put  on  auction  for  the  first  round,  the  bidding process in the State of Rajasthan, Gujarat and Maharashtra could not attain finality.

While auctioning is being conducted by the respective State Governments, for its success the Central Government has taken a number of steps. The subordinate legislation and model templates  have  been  notified.  Before  notifying  the  same  detailed  deliberations  with  all  the stakeholders including States and the Industry Associations were carried out. In addition, in order to successfully carry out of the task of auctioning of mineral concession, the Central Government through its organization and Public Sector Undertaking have provided required assistance to the concerned State Governments.

Demand and supply configuration of particular ore in the vicinity, quantity and grade of ore  and  economic  uses,  quality  of  the  mineralization  studies,  land  ownership  pattern, Coastline environment restrictions wherever applicable, general market scenario and any end use conditions imposed by the states in the bidding documents are factors that have bearing on the response of potential bidders in the auction process. State Governments have to take a note of these factors while inviting tenders.

## Details of Online Auction of Mineral Blocks other than Coal

## ANNEXURE

|   S.No | State        | Name of Block                          | Name of Mineral   | Auction for Mining Lease (ML)/Prospecting cum Mining Lease (PL cum ML   | Bid Due Date   |   Quote received | Reserve Price   | Successful Bid   | Cumulative revenue to state government for period of 50 years                     |
|--------|--------------|----------------------------------------|-------------------|-------------------------------------------------------------------------|----------------|------------------|-----------------|------------------|-----------------------------------------------------------------------------------|
|      1 | Chhattisgarh | Baghmara, Balodabazar- Bhatapara       | Gold              | PL cumML                                                                | 26.02.2016     |                4 | 1%              | 12.55%           | Total 110 crore, inclusive of 81 Cr additional contribution through auction.      |
|      2 | Chhattisgarh | Kesla, Raipur                          | limestone         | ML                                                                      | 19.02.2016     |                3 | 5%              | 10.15%           | Total 887 crore, inclusive of 314 Cr additional contribution through auction.     |
|      3 | Chhattisgarh | Karhi Chandi, Balodabazar- Bhatapara   | limestone         | ML                                                                      | 18.02.2016     |                5 | 5%              | 58.95%           | Total 5802 crore, inclusive of 4413 Cr additional contribution through auction.   |
|      4 | Jharkhand    | Harihaspura Block I, Ramgarh Limestone |                   | PL cumML                                                                | 12.02.2016     |                3 | 10%             | 12%              | Total 7 crore, inclusive of 3. Cr additional contribution through auction.        |
|      5 | Jharkhand    | Harihaspura Block II, Ramgarh          | Limestone         | PL cumML                                                                | 12.02.2016     |                3 | 10%             | 12%              | Total 11 crore, inclusive of 5 Cr additional contribution through auction.        |
|      6 | Odisha       | Ghoraburhani- sagasahi, Sundargarh     | iron ore          | ML                                                                      | 02.03.2016     |                7 | 5%              | 44.35%           | Total 11,328 crore, inclusive of 8216 Cr additional contribution through auction. |