Chhattisgarh became the
first state on Thursday to successfully conclude the first phase of non-coal
mining auctions.
The state
government will get an additional Rs 4,413 crore over the life of lease in
addition to royalty, district mineral foundation, national mineral exploration
trust contributions, tweeted Union Mines Minister Narendra Singh Tomar.
“Congratulations
to Chhattisgarh government and officials of mines ministry of the Indian
government for bumper success of mining lease auction done for the first time
in the country,” he said in another tweet.
Successful
completion of the auction process in one of the top mineral-rich states has
given relief to the central government, which was worried as the first phase
auctions saw an extremely slow start.
At the
start of 2015, the government was planning to complete the first phase auction
process of 80 odd mines by end-November. However, only four states had issued
notice inviting tenders for 27 mines till then as the states were hesitant from
inexperience in the auction process.
According
to the new Mines and Minerals (Development and Regulation) Act, 2015, state
governments have to auction their non-coal mineral mines through a two-tier
forward-bidding process. Before this Act, mines were handed out to miners on
discretionary basis by the state governments. Mineral auction rules under the
new mines Act state bidders will have to quote the percentage of the value of
the mineral dispatched from the mine in a month in the first round. The highest
initial price offer would be considered the floor price for the second round of
auction.
Subsequently,
the bidders would be ranked on the basis of the descending initial price offer
submitted by them. The first 50 per cent of the ranks, or the top five bidders,
whichever is higher, would be termed qualified bidders for participating in the
second round of e-auction.
The
second-round auction will follow the simple forward-bidding process, where the
bidder quoting the highest percentage would be deemed the winner.
Business Standard, Kolkata, Friday, 19th February, 2016
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