In a recent event of organising new National Mineral Exploration Policy (NMEP), 100 mineral blocks of comprising 100 sq km each likely to be explored by November this year. The approval subjugated from Government of India would all the way help to boost mining potential thus attracting more foreign direct investment in the country.
An exponential development in the mining sector is leaving minimal concern regarding the exploitation of mines located in different part of the country. The auction to be held 4 to 5 months later, prep up private players into the process.
According to Mines Minister Narendra Singh Tomar, Geological Survey of India (GSI) has identified 100 blocks. SBI CAP is working on the auction modalities for these blocks and will submit its report in 2-3 months. NMEP is based on revenue share model to encourage private players and FDI. A sum of Rs 2,116 crore will be needed for its implementation.
At current state India possesses 8 lakh sq km of mining areas of which mere 9 to 10% has been curated since time. The sole government agencies, GSI and MECL had earlier stated that the capacity is quite low due to which adherence get affected. Now, the private bodies would ascertain regional and detailed way of explorations thus generating appropriate revenue. It would differentiate in either form as of lump-sum amount or annuity. The respective payment can be paid during the entire tenure of lease with the power of transfer.
The process of retaining private players can be reachable via e-auction procedures. The bidding will be done through competitive procurement proposed by transparent processes. Earlier, in state of mining auction, State have already auctioned 7 mines with mineral reserves worth Rs. 29,000 crores. Government of India, Mining segment will now avail revenue of almost 13,000 crores INR. over the next 50 years.