The Union Cabinet on Monday cleared an Ordinance on mines. The Ordinance would pave the way for auction of iron ore and other minerals as proposed in the Mines and Minerals Development and Regulation (MMDR) Bill. The Ordinance also provides for greater decentralization of power to states for allocation of mineral mines. The Cabinet also approved the largest-ever telecom spectrum auction that is targeted to fetch at least Rs64,840 crore from the sale next month.
Coal and mining are some of the priority areas for the NDA Government. These sectors have been facing several issues, including ban on mining. Though the UPA Government had brought a Bill in 2011 to amend the MMDR Act, it lapsed with the dissolution of the lok Sabha.
The new Government has reactivated the Bill and made some amendments to the MMDR. The Mines Ministry has circulated a note among various Ministries seeking suggestions on the MMDR which also focuses on attracting private investment and latest technology and eliminating delay in administration while batting for competitive bidding through auctioning.
However, since the Parliament session is still two months away, and a lot of mines are closed, the Government chose to take the Ordinance route since it was not able to allocate mines in the absence of guidelines.
Also, after fixing the reserve price for spectrum, the Government will sell 380.75 megahertz of second generation (2G) spectrum in three bands -- the premium 900 MHz, 1,800 MHz and 800 MHz. Spectrum in 2,100 MHz may also be put on auction simultaneously after the Defence Ministry vacates it.
The Cabinet, headed by Prime Minister Narendra Modi, approved a reserve price of “Rs 3,646 crore pan-India per MHz in 800 MHz, Rs 3,980 crore for 900 MHz band pan-India excluding Delhi, Mumbai, Kolkata, and J&K; Rs 2,191 crore pan-India (excluding Maharashtra and West Bengal) in 1,800 MHz band,” an official statement said. Reserve price for 2,100 MHz was not announced yet.