Sixteen mines have been identified in Odisha for auction, the process for which would start by the end of October, Union Secretary of Mines Balwinder Kumar said here on Thursday.
"The Mines & Minerals Development Regulations Act (MMDR Act) has been amended. Now, we are requesting all States to go in for auction of plots/blocks in accordance with the amended law. We are very happy that the Odisha Government has taken very proactive steps in this regard. They have identified 16 blocks, and the Odisha Government is hopeful that by end of October they will start auctioning the blocks," Kumar told mediapersons after a meeting with Chief Secretary GC Pati at the State Secretariat here.
"This is very important because the whole country is looking at which State is going to put the blocks on auction," he added. Kumar said he requested the Odisha Government to constitute the proposed District Mineral Foundation Fund (DMFF) at the earliest.
"This fund will be operational from January 2015 onwards. Some of the districts will be getting funds to the tune of Rs 200 crore, Rs 300 crore or Rs 400 crore. So, we have requested the Chief Secretary that all the DMFF trusts should be formed as soon as possible so that funds can be transferred immediately. The Government of India will very soon indicate the percentage of royalty which will be put in these DMF funds," Kumar said.
He also said he requested the State Government to build capacity of these districts to properly utilise the huge funds that would be flowing in for socio-economic development and welfare of the people engaged in mining activities.
Chief Secretary Pati also informed that the State Government would very soon issue a notification on auction of mines. "We have already begun a DGPS survey and allied works connected with auctioning of mines blocks like appointment of consultants for preparation of bid documents. The process has started, and we are hopeful that by the end of October auctioning can start." he said.
Pati said only those blocks which have been explored up to G2 and G3 levels can be put up for auction for exploration purposes. Blocks in which no exploration has been done cannot be put up for auction. The 16 blocks listed for auction in the first phase have been selected on the basis of these rules, he clarified. "The survey of these 16 blocks is underway and will be completed by September. After completion of other allied works, it is hoped that auction can begin by October. The rules framed for the DMFF have been approved by the State Government. It's now being examined by the law Department, and after its final drafting it will be notified," the Chief Secretary said.
Notably, in the second week of this month, the State Government issued a gazette notification forming a high-level committee to advise it on the issue of auctioning of mines, besides finalising the modalities for the auction process in accordance with the provisions of the amended MMDR Act.
While the Development Commissioner is the chairman of the committee, the Secretaries of the Mines and Industries Departments are among its seven members.
The first meeting on the auction of mines, which was scheduled to be held on July 28, has now been shifted to the first week of August, official sources said.
Among the tasks assigned to the high-level committee are supervision of the process of auction of mines, Differential Global Positioning System (DGPS) survey, preparation of tender/bid documents and advising the Government on reserving mines for public sector undertakings during the leasing out of mines as well as in granting of prospecting licence (Pl), sources revealed.
The committee would also advise the Government on the sectors that need to be given priority during reservation or auction of mines. In the initial phase, the high-level committee has identified 16 areas in the districts of Keonjhar, Sundargarh and Malkangiri, including the Khandadhar mines in Sundargarh, for auction, reliable sources said.
Sources said the meeting to be held in the first week of August would deliberate on nine areas with iron ore, five areas with manganese and two areas with limestone deposits.