MINES PLANNED TO BE AUCTIONED IN 2017-18

a company has already got the mining licence (ML) of a non-coal block for captive purposes, it can continue to mine it till the lease period ends. Once it ends, such a company will have the first right of refusal. Moreover, the law stated that if a company has the ML of a block for non-captive purposes, the company can keep the mine till 2020 or till the lease period ends, whichever comes earlier.

While the Union mines ministry was busy passing this mining law in Parliament at the beginning of 2015, the coal ministry was busy preparing for the auction of few of the 214 coal mines that were de-allocated following the Supreme Court order of September 24, 2014. The Supreme Court had explicitly stated that companies would have to return the coal blocks by March, 2015.

Therefore, as the coal ministry was working on a deadline, the first phase of coal auction was conducted in February 2015. The three phases of the coal auction for close to 45 coal-producing blocks were conducted in the seven month period of February-august

ANDHRA PRADESH

Gold Limestone

CHHATTISGARH

Bauxite Limestone

GUJARAT

Limestone

KARNATAKA

Iron Ore

MADHYA PRADESH

Limestone Graphite Bauxite Limestone Tungsten Manganese Copper

ODISHA

Iron Ore Bauxite

TAMIL NADU

Molybdenum Limestone Graphite Iron Ore

JHARKHAND

Gold Graphite Iron Ore Limestone Bauxite Emerald

RAJASTHAN

Iron Ore Manganese

in 2015. As per coal ministry estimates, the auctioned mines are expected to fetch the mine-bearing states a cumulative revenue of Rs 3.5 lakh crore over a 30-year period. Both power and non-power sector participated in the same. For the government, it was a big success.

However, the coal ministry had to cancel the plans to conduct the fourth tranche of coal auctions, which were planned in January, 2016, as there was lack of demand from iron, steel and cement plants. The fourth tranche of coal auctions were for them only. This was the time when the state governments had begun the process of non-coal mineral auctions.

Now, on February 2 this year, the coal ministry announced that it is going to auction 23 coal mines in the coming financial year — four of them would be put for commercial mining auction. And just like Union mines ministry, it is hoping that this time, industry would be much more interested in participating in the bidding process.