The Geological Survey of India (GSI) would explore 73 mineral blocks across the country in this fiscal to the G2 level to make them eligible for auctions. The identified blocks are in 17 states and have been explored up to G3 level.
A mix of gold, iron ore, bauxite, limestone, tungsten, base metal, glauconite, graphite, manganese, nickel and potash blocks are lined up for further exploration. In 2016-17, GSI had taken up 82 mineral blocks for exploration up to G2 level.
So far, 27 mineral blocks have been auctioned in 10 states with resources of the auctioned assets estimated at Rs 1.54 lakh crore. The revenue from these auctioned mineral blocks is pegged at Rs 1.19 lakh crore. An additional revenue of Rs 91,891 crore would be accrued to the states from the auctioned blocks. The incremental revenue is over and above the royalty and funds to the District Mineral Foundation (DMET) and the National Mineral Exploration Trust (NMET) totaling to Rs 27,139 crore. The DMF for mineral concessions granted after the enforcement of the amended Mines and Minerals-Development & Regulation (MMDR) Act, 2015 is fixed at 10 per cent whilst for the older mines, the amount payable by the leaseholder is 30 per cent of the royalty.
Odisha, the largest iron ore producer has lined up seven more mineral blocks for auctions in this financial year. In the list are five iron ore, one limestone and one graphite block slated to be auctioned in December this year.
The blocks will be auctioned after receipt of reports on exploration from the Mineral Exploration Corporation Ltd (MECL). The state has hitherto auctioned five mineral blocks- three iron ore and one each of limestone and manganese. Essar Steel, Bhushan Steel Ltd and Bhushan Power Ltd have bagged one iron ore block each. The sole limestone block has gone to Dalmia Cement whilst mine developer cum operator Thriveni Earthmovers Ltd has got the manganese ore block. The combined value of these auctioned assets is estimated at Rs 41,782 crore.
For auctions of minor minerals, the Odisha government has already notified the Rules. Under that rules, auction method as well as collection of DMF (District Mineral Foundation) for minor mineral has been adopted. Till date, the state government has realized Rs 2760 crore under DMF. As many as 2316 projects, costing Rs 818.97 crore, under Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) have been identified and till date, Rs 75.39 crore has been spent.
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