(FE)
With non-coal mining auctions having had a tepid response so far, the mines ministry may soften rules without amending the provision for auctions under the Mines and Mineral (Development and Regulation) Amendment Act, 2015. Aimed at bringing in transparency into the process of allocation of non-coal mines, the government had amended the previous Act, but the responses are not as encouraging as only 29 mines could be allocated since then. Sources say many auctions have to be annulled initially for the lack of bidders. The contour of the proposed changes in the rules will be discussed at a meeting with the mineral-rich states like Jharkhand, Odisha and Chhattisgarh on Wednesday. A committee has also been formed in the ministry for looking into the probable changes that will make the auctions more attractive.
“Auction will always be a basic requirement because the Act will not change. However, we will try to make the rules more conducive. We would like to improve,” mines secretary Arun Kumar said. After the Act was amended, the government had said 50 mineral blocks could be auctioned in the first year itself. However, even as more than two and half years have gone by, the allocation of 29 blocks points towards limited success of the process that was aimed at making things easier and transparent.
