A total of 9 mineral blocks put on auction including two from Karnataka iron ore plots with excellent response upto 100 per cent bidding over reserve price, Secretary, Ministry of Mines, Balvinder Kumar said at an ASSOCHAM event on Tuesday.
On the current status of mineral auction, He said, “a total 9 nine blocks have been put on ‘successfully’ auction including two from Karnataka iron ore plots and total 7 blocks are being put up to auctions by state government of Karnataka and we expect extremely good response in these seven mineral areas”, said Kumar while inaugurating an ASSOCHAM conference on ‘India Mining Summit 2016’.
The bids for the first iron ore in karnataka were 90 per cent above the reserve price. In the second mine, the bid was almost 100 per cent over reserve price and these are very encouraging results. He further said, the Government will be getting above Rs 25000 crore by the way of royalties etc over the period of 50 years.
On the issue of aluminium industry minimum import duty hike or minimum import price (MIP), Kumar said, we are examining this matter in great depth and two-three rounds of discussions have taken place with different segments of aluminium industry. So, either we may go for MIP or alternatively to increase the import duty but we want to develop consensus among the different segment of aluminium industry. We are working on it and in next 15 days will take decision on this issue.
He said, “we are also examining the both the options of buy back of shares or declaration of special dividend or both options”.
By end of this fiscal year, minimum 40-50 mining leases to be auctioned by various states. 15 category C mines were re-auctioned, earlier cancelled by Supreme Court.
Mining industry is in the phase of recovery where many reforms are taking place. Mining provides direct employment to 2.6 billion people. On real time basis, one can see production of all minerals across states.