Auction of mines turned mineral resources growth uncertain: FIMI

NEW DELHI: The auction regime put the nation back by one generation with uncertain future for the growth of country's mineral resources and continued dependence on ever-increasing imports, miners' body FIMI has said.

It also stressed that it is high time for India to deliberate whether auction is the right policy instrument for mineral development.

Auction did not also prove to be as transparent or fair as was thought, Federation of Indian Mineral Industries (FIMI) Secretary General R K Sharma has said.

"Auction has neither served public good nor led to fair allocation of resources. The sole focus to maximise revenues for the states has adversely affected long-term mineral development in the country and socio-economic benefits in mining areas," he said.

With a view to analyse the impact and efficacy of the auction of mineral resources, FIMI said that it has undertaken an in-depth study.

As per the study, the 'auction' has neither brought transparency nor expected revenues to the States. Rather the system has brought scare among the consumers/ industries about the availability of raw materials which led to high and unsustainable bids.