Bidding for 100 mining blocks soon

Close on the heels of initiating the auction of mines, the NDA government, in a first of its kind exercise, plans to put on sale 100 mining blocks, which also include diamond reserves.

According to sources, the auction of blocks would be done for the exp-loration purpose on the revenue sharing basis.

The mines ministry has already started the process of identifying the prospective blocks seven months ago with the active participation of the Prime Minister’s Office (PMO), and is now ready with the complete geographical details of the reserves, highly placed sources said.

Normally anywhere in the world, mines are put up for auction, but it would be for the first time that blocks ranging from 100 square kilometres to 1,000 square kilometres consisting of gold as well as diamond and iron ore would be offered for bidding, official sources said.

The government is keen to attract international exploration companies to participate in the bidding process of these blocks.

Mineral blocks are usually allotted to companies for exploration and therefore the introduction of the auction route for blocks has been introduced for the first time.

The idea behind the concept was to promote transparency in the entire mineral sector, sources pointed out.

Sources added that the Mineral Exploration Policy is being finalised and is expected to be ready in a couple of months time. It will also underline the contours of revenue sharing model.