The State Cabinet on Monday decided to dispose all major mineral concessions, barring coalmines, through the public auction route to the highest bidders.
Besides, it decided that all mining leases awaiting second and subsequent renewals would also be allocated through the new system.
However, the decision would not be applicable to those leases that have already been issued grant orders and are awaiting execution of lease deed after approval of the Centre. Such lease deeds would be revoked in case they are not executed within the specified time limits as per law.
Similarly, the mining leases (Ml) awaiting first renewal, those given Express Orders and of Odisha Mining Corporation and other PSUs would not come under the public auction system.
Other applications, for which the State Government has already recommended prospecting licence I to the Centre in pursuance of an agreement or MoU would not go though the new system, provided they have fulfilled its obligations.
In order to encourage competition and to ensure an equitable distribution, the area of mining lease to be allocated to a single non-captive entity will be limited to a reasonable extent even below the ceiling of 1,000 hectares prescribed in the MMDR Act.
The above decision was taken in conformity the Supreme Court pronouncements and is expected to help State to get more revenues besides maintaining transparency in the allocation of mineral resources.
The policy is also expected to attract investments for large, medium and small mineral based industries and facilitate ancillary and downstream industries, stated Government officials.