The Government should complete exploration of mines before auctioning them to bidders so they have access to information that can help them make an informed business decision, says a report.
A joint report by Ernst and Young (EY) and industry body Federation of Indian Mineral Industries (FIMI) points out that due to various constraints, Geological Survey of India (GSI) has been unable to complete the exploration for most minerals, making it difficult for states to properly quantify them.
In such a scenario if minerals like iron ore, bauxite and limestone are auctioned, it could lead to either revenue loss for the Government or a financial setback for the successful bidder, the report ‘Mineral Concessions Framework: Imperatives for Success’ said on Thursday.