The Union Government has urged the Odisha Government to expedite the process of auction of mineral blocks to provide the long-awaited impetus to the mining sector, augment the State’s revenue and increase the availability of raw materials for domestic industries.
Union Minister Steel & Mines Narendra Singh Tomar wrote to Chief Minister Naveen Patnaik in this regard on Wednesday. Detailing out the steps taken by the Union Ministry of Mines in facilitating the process of auction, Tomar has said an activity-wise check list has been formulated by the Ministry.
So, the State Government is now required to take prompt action for auctioning of minerals by way of identification and demarcation of mineral blocks, assessing the mineralisation of the blocks, fixation of reserve price, reservation of end use and firming up other related activities, urged Tomar.
In order to expedite the process, the State Government may engage the services of the SBICAP as Transaction Advisor (TA) and the MSTC as the e-auction platform provider.
The Ministry of Mines has asked the GSI and the MECl to provide all assistance to the State Government for expediting the mineral blocks. The Ministry has handed over mineral exploration reports of 166 mineral blocks earlier done by the GSI.
In the meantime, the Ministry of Mines has formulated a Model Tender Document and mine Development and Production Agreement (MPDA) to facilitate the State Government in expediting the auction process.
The Coordination cum Empowered Committee (CCEC) of the Ministry of Mines headed by Union Secretary of Mines Balvendra Kumar has intensely discussed the process of auction of minerals with the senior officials of the State, and he recently visited the State to help expedite the auction process. Kumar also collected feedback from State Government officials and those are positive one, said an official.
As the MMDR Act, 1957 has already been amended bringing in a paradigm shift in the process of grant of mineral concessions, the State Governments would be able to allocate mineral concessions only through auction, said he.
So there should not be more delay in initiating the process, the benefits of MMDR Amendment Act, 2015 could fully be harnessed by active and collaborative participation of Centre and State, said Minister Tomar.