Seeking to tread a cautious path, the Mines Ministry on Friday said it had sought the Law Ministry’s advice on how to go about granting leases till the proposed new Mines and Minerals (Regulation and Development) Bill 2011, having provisions for auctioning of mines, is passed.
“We have asked for legal opinion. We are awaiting advisory from the Law Ministry,” Mines Secretary Viswapati Trivedi told reporters.
The Law Ministry’s advice was sought about two weeks ago, he said.
At present, States, as owners of minerals, grant mineral concessions after getting prior nod from the Centre.
The Bill, which has been referred to the Parliamentary Standing Committee after being introduced in the Lok Sabha in December last, has provisions for introducing a transparent mechanism for granting mining lease through competitive bidding.
It has proposed that where there is confirmed known mineralisation, auction should be the way. But where the mineralisation is not known, it is difficult to auction. “There are provisions for both kinds of concessionary systems,’’ Mr. Trivedi said.
In a report on allocation of coal blocks tabled in Parliament last week, the Comptroller and Auditor-General (CAG) said: “Delay in introduction of the process of competitive bidding has rendered the existing process beneficial to private companies. Audit has estimated financial gains to the tune of Rs. 1.86 lakh crore likely to accrue to private coal block allottees.”
