STOCK MARKET BSE NSE

IMG to Lure Investors for Mining Auction

The IMG, to be headed by Mines Secretary, will have representation from both Centre and State governments.

Published: 27th April 2016 06:51 AM  |   Last Updated: 27th April 2016 06:55 AM   |  A+A-

IMG

NEW DELHI: Dissatisfied with states inability to get investors in the recently concluded mine auctions, the Centre has decided to constitute an Inter-ministerial group (IMG) to evaluate the mistakes and draw up a reworked plan on the lines of successful coal auctions.

IMGa.jpgOnly six blocks out of 43 identified have been auctioned by three states so far. The IMG, to be headed by Mines Secretary, will have representation from both Centre and State governments. The first meeting of IMG is scheduled on May 4.  “The IMG constitutes of all concerned Union and State ministers and secretaries. We have scheduled our first meeting on May 4 to expedite the entire process and resolve the issues,” Balwinder Kumar, Mines Secretary told Express.

The meeting will also include discussions on how to bring more investors for remaining mines that have not been able to garner interest. The directive has also come from PMO to resolve the environmental and other related issues with various states, so that potential bidders are attracted.  

States had identified 43 mines bearing minerals such as iron ore, bauxite, gold and limestone for auction in the first phase. Only six mines have been auctioned, which will earn a revenue, including royalties, of Rs 18,146 crore.

“Each state has its own problem and hence they have also shared their inability for lacklustre response from investors. We will discuss all these in detail and try to resolve the various issues,” Kumar added. 

For instance, for the state of Goa said that there was no scope for more iron ore blocks to be put for auction and requested mines ministry to approach Supreme Court for relaxing the cap on production of the ore.

However, industry experts wants the government to complete exploration of mines before auction so that bidders have access to information that can help them take an informed decision.

MINING TREASURE

■ Only six blocks out of 43 identified have been auctioned by three states so far

■ The IMG, to be headed by Mines Secretary, will have representation from both Centre and State governments

■ States had identified 43 mines bearing minerals such as iron ore, bauxite, gold and limestone for auction in the first phase

■ The first meeting of IMG is scheduled on May

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp