Cabinet to take up mines ordinance in next few days

The ministry had recently circulated a note seeking comments of concerned ministries on certain important amendments to the Act. It is learnt that stakeholders have given divergent opinions on the legislation. As per the blueprint, the ministry is keen to auction mining leases of major minerals to ensure uninterrupted operations of the end use plants like steel and aluminium. The Indian Express had reported last month that the government has finalised a list 31 mining leases for iron ore and bauxite mines to be auctioned by April 2015. These mines have been fully explored and the quantum of mineralisation ascertained by state-run exploration agencies. With over 60,000 mining leases pending with the central and different state governments, the ministry is learnt to have decided to auction at least 150 leases next year.

The government is likely to follow a two-way bidding system — technical and financial bids. Section 11 (3) of the Mines and Minerals (Development and Regulation) Act 1957 empowers the government auction mines through the competitive bidding process, except for those areas which have been earmarked for state-run entities.