States gearing up for second phase of mines auction in September

The industry does not seem very enthusiastic about limestone blocks, which they say could be owing to the slump in the cement market.

PTI September 05, 2016 16:19:34 IST
States gearing up for second phase of mines auction in September

After the industry's lukewarm response to the first phase of mines auction, states are gearing up for the second, which will see mines bearing minerals like gold, diamond and iron ore go under the hammer.

States gearing up for second phase of mines auction in September

Representational image. Reuters

Five states -- Karnataka, Andhra Pradesh, Madhya Pradesh, Rajasthan and Jharkhand -- will offer a total of 29 mines for the auction that will commence from the third week of this month, a senior government official said.

"This time, there are 14 iron ore mines, 12 blocks of limestone and 1 block each of gold, diamond and copper," the official added.

According to analysts, there will be good response for iron ore mines, and gold and diamond too will see interest.

However, the industry does not seem very enthusiastic about limestone blocks, which they say could be owing to the slump in the cement market.

"Though cement market seems to be reviving, there does not seem much interest from the industry. Companies do not seem to be very active in bidding for the blocks," a senior official from a cement firm said.

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.

States were able to auction 7 mines in the first phase with mineral reserves worth about Rs 29,000 crore. The revenue to accrue from these mines over the next 50 years will be more than Rs 13,000 crore.

Of this, 17 blocks could not be sold due to insufficient number of initial bids on account of factors such as quantity and grade of ore, quality of the mineralisation studies, land ownership pattern, dull market scenario and end-use conditions imposed by states.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Bombay High Court orders Goa government to appoint new Lokayukta in three months
India

Bombay High Court orders Goa government to appoint new Lokayukta in three months

The post of anti-corruption ombudsman has been lying vacant since the tenure of Justice PK Misra (retd) ended on 17 September

MPSOS releases Class 12 results for Ruk Jana Nahi scheme at mpsos.nic.in, here's how to check
India

MPSOS releases Class 12 results for Ruk Jana Nahi scheme at mpsos.nic.in, here's how to check

Madhya Pradesh Open Board Class 12 Results have been published for the exams held between 17 August and 2 September

AP EAMCET 2020 answer key released at sche.ap.gov.in; students can raise objections till 28 Sept
India

AP EAMCET 2020 answer key released at sche.ap.gov.in; students can raise objections till 28 Sept

The examination conducting body has also mailed out question paper, responses submitted and preliminary answer key to all the candidates on the email address provided by them at the time of registration