Industry bodies have made an earnest plea to the Government of India against extending validity of merchant mining leases expiring by March 2020.
Assocham estimates that the government could face INR 79500 crore loss if the lease validity of non-captive mines is extended for 10 years till 2030, a tenure co-terminus with the captive leases.
Instead of extending the validity, Assocham suggested that the government can auction the lapsing miners and enrich its revenue coffers. This step would also boost transparency in mineral allocation.
Industry bodies like Assocham, Indian Chamber of Commerce and Karnataka Iron & Steel Manufacturers Association have shot off separate letters to Niti Aayog and concerned miniseries. All of them finding a common ground, have protested any suggestion to give leeway to the merchant miners.
“In order to provide a level playing field between captive and merchant miners, it us crucial that fresh auctions of the iron ore mines are conducted and both be given a fair and equal chance to participate in the auction, considering that of all the iron ore mines allowed till date, the majority belong to merchant miners”, they reasoned.
As per a report published by a committee of the Union mines ministry, 334 mines are heading for expiry. In the list of lapsable mines, only 45 are operative and thus includes 33 working iron ore mines.
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