The State Government has so far auctioned five mineral blocks, which would earn revenue of over Rs 31,000 crore over the lease period.
With the Government of India amending the Mines and Mineral (Development & Regulation) Act, 1957 with effect from January 12, 2015 to bring in auction process for mineral resources, Odisha has already auctioned three iron ore blocks, a limestone block and a manganese block.
These mineral blocks with resources worth Rs 41,782 crore have been auctioned, which would accrue revenue of Rs 31,726 crore, according to Union Mines Secretary Anil G Mukim.
However, none of the mineral blocks has been made operational as there are a number of statutory clearances needed for the purpose.
After the Act’s amendment, several minerals-rich States have already auctioned 53 mineral blocks with resources worth Rs 2, 25, 851 crore. These blocks would yield revenue worth Rs 1.90 lakh crore, officials say.
The Governments of Odisha, Chhattisgarh, Jharkhand, Madhya Pradesh and Rajasthan are on the forefront of auctioning mineral blocks.
Looking at the huge revenue in picture, Mukim has written to the State Governments asking them to review the status of statutory clearances for the auctioned blocks to ensure their early operations.
The State Governments issue several statutory clearances for operation of mineral blocks while the Union Government also provides several clearances like forest and environment. It takes a lot of time and the process has to be accelerated and the auctioned mines are to be made operational as soon as possible, officials say.
Against this backdrop, the Union Government has asked the Odisha Government to review the status and has sent a detailed list of prerequisites to be done on the auctioned mines and report back to the Ministry of Mines.
As many as 15 types of clearances including forest, environment, wildlife, groundwater, consent to establish and social impact are to be issued by both Union and State Governments, said an official.
Most importantly, Gram Sabha consent is needed to make the mineral blocks operational. It is more difficult to get Gram Sabha consent for mining, officials admit.
The Union Secretary has also asked the Odisha Government to chart out a Plan of Action for auction of mines to be held in 2019-20.
Sources said the State Government has decided to go in for auction of 16 more mineral blocks and documents have been prepared accordingly. However recently, auction of two iron ore mines having reserves of 93.87 million tonnes in Odisha has been deferred. The Government has not given any reason for deferment of the mines.
While the Chandiposhi iron ore block in Sundargarh district has a reserves of 47.07 MT, the Purheibahal block has a reserve of 46.80 MT, officials said.
