Mines Auction: States To Garner Revenue Of More Than Rs 35,500 Crore

After a lackluster start earlier this year, auction of mines is gathering pace with states set to get more than Rs 35,500 crore as buyers lapped up 11 mines containing minerals such as iron ore, gold, and limestone.

The first phase of the auction saw miners bid for seven mines – five limestone and one each of iron ore and gold. States will garner revenues of around Rs 15,070 crore from the blocks over a lease period of 50 years. The estimated value of these reserves is around Rs 31,125 crore.

In the second round, states have so far auctioned 4 mines – three iron ore and one of limestone. Through this the revenue that is set to accrue is to the tune of Rs 20,515 crore. The estimated value of reserves is about Rs 24,325 crore.

"Auctions are picking up pace. Industry is now bidding for mines. So far 11 mines have been successfully auctioned and through this states will garner revenues of more than Rs 35,500 crore," a senior government official said.

The total estimated value of reserves in these mines is around Rs 55,550 crore, he added.

In the second phase of mines auction, which started last month, Karnataka, Andhra Pradesh, Madhya Pradesh, Rajasthan and Jharkhand have offered a total of 29 mines.

Of these 29 mines, 14 are of iron ore, 12 of limestone and 1 block each of gold, diamond and copper. During the first round held in the last financial year, states offered nearly 47 mines bearing minerals such as gold, iron ore, bauxite and limestone. Analysts expect that there will be good response for iron ore mines, and gold and diamond too will see interest.