The Centre has taken back mineral mines from states, as a consequence of non-production, Pralhad Joshi, Union minister for coal and mines, mentioned, including that the 17 blocks will likely be put up for public sale.
“Big PSUs were sitting with big mines for the past 10, 15, 20 years without any production. While NMDC has done well, there were many PSUs sitting idle with mines, which was a national resource. So, we have decided that if a mine does not start production in five to six years, we will take them back and auction them,” mentioned Joshi.
He mentioned states have been approached to give up these non-producing mines however they’d considerations over confiscation of financial institution assure. “So, we said that it (bank guarantee) won’t be taken, just give us back the mines,” Joshi mentioned.
Also Read: 190 main mineral blocks auctioned in seven years, says Pralhad Joshi
In March, Lok Sabha handed the Mines and Minerals (Development and Regulation) Amendment Bill, 2021, which proposed to take away curbs of end-use for future auctions of mineral mining rights, permitting operators of present captive mines to promote as much as 50 per cent of minerals extracted in a yr.
Joshi mentioned related rest of eradicating finish use restrictions for captive coal mines has improved their manufacturing and is slated to the touch 140 million tonnes by the top of this fiscal yr. He mentioned this had additionally elevated the income within the sector.