The central government along with help of their respective state govt.’s is all set to start the mineral block auction process in their respective states.
Talking about Karnataka, the govt. will begin the auction process with the auction of 11 “C” category mines. In accordance with MMDR Act, 2015 rules and regulations laid down by the Apex Court the Govt. of Karnataka is all set to auction 11 iron ore mines for grant of mining lease.
Department of Mines & Geology, Karnataka in its recently issued tender has invited bids for grant of mining lease for iron ore. Only the end users will be eligible to participate in the e-auction.
In the first stage of e-auction process, the bid due date is 18 Jan’16 which will be followed by opening and examination of technical bids. On 29 Jan’16, technically qualified bidders will be announced.
List of mines in Karnataka that will be auctioned in the 1st phase
| S. no | Name of Mines | ML No. | Concession Area (in Ha) | Estimated Resource (in MnT) |
| 1 | Tunghabhadra Minerals | 2365 | 130.53 | 33.89 |
| 2 | Channakeshava Reddy | 2566 | 7.57 | 3.179 |
| 3 | Nidhi Mining Company | 2433 | 29.49 | 10.024 |
| 4 | Rama Rao Paol | 2621 | 33.8 | 31.532 |
| 5 | M.Srinivaslu Mines | 2631 | 75.14 | 9.88 |
| 6 | SB Minerals | 2393 | 40.38 | 4.296 |
| 7 | VS Lad & Sons | 2290 | 100.54 | 28.619 |
| 8 | Tunghabhadra Minerals | 2366 | 33.21 | 6.939 |
| 9 | Ramgad Miners & Minerals Pvt Ltd | 2451 | 24.04 | 2.137 |
| 10 | Lakshminaraya Mining Company | 2487 | 86.12 | 14.709 |
| 11 | BR Yogendranath Singh | 2186 | 15.89 | 2.842 |
Snap shot of Auction process:
The auction process is divided into two rounds-first & second:
First Round-
- Bidders need to submit necessary documents to participate in the auction process. Thereafter they need to submit intial price offer which should be greater than or equal to reserve/base price. Technical bid due date-18 Jan’16
- Those bidders whose initial price offer is greater than or equal to reserve price & meet with necessary requirements will be declared as “Technically qualified bidders”. Announcement of technically qualified bidders on 29 Jan’16
- The highest initial price shall be floor price for 2nd round of auction
Second Round-
- Technically qualified bidders shall be ranked in descending order as per the initial price submitted by them thereafter they will have to submit final price offers. Submission of final price offers-till 12 Feb’16
- Bidder who quotes highest final price will be considered as the preferred bidder. Announcement of preferred bidder by 12 Feb’16
- Preferred bidder will be granted mining lease after which theywill have to make required upfront payment in 3 tranche of 10%, 10% & 80% respectively. Post submission of payments performance security will be given to the preferred bidders
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