Post News Network
Bhubaneswar, Jan 5: In what could be a real game-changer in the state’s mining sector, the state cabinet which met here Monday under the chairmanship of Chief Minister Naveen Patnaik, decided to put to auction all major minerals except coal.
The move will bring in the much-needed transparency and fair play in the allocation of mineral resources. The auction will apply to all major minerals (excluding coal), especially those awaiting second and subsequent renewals. The new policy will put an end to the hitherto practiced monopolistic system and a concrete step forward for progressive economic reforms.
Terming this historic, the CM said, “To carry forward my government’s commitment for a clean, honest, transparent and progressive governance, today the Cabinet decided to put all new mines (major minerals except coal) and those pending for second and subsequent renewals to public auction through a competitive bidding process.”
Orissa is the first state in the country to have taken such a progressive and pro-people decision in the mining sector, Patnaik said. This will enable the state to gain substantially in revenue generation, which the government can utilise in its flagship development schemes like Biju Pucca Ghar Yojana for shelter security and other welfare schemes to benefit poor people of the state, Patnaik said.
Briefing the media, Chief Secretary G C Pati said, the auction will not be applicable on five cases such as mining leases that have already been issued grant orders; mining leases awaiting first renewal, mining leases that have already been granted express order for renewal, all existing leases of state and Central public sector undertaking (PSUs) and mining leases which the state government has already recommended to Centre for prospecting licenses.
The decision is in conformity with the Supreme Court order and would generate more than Rs10, 000 crore revenue from the mining sector annually, said forest and environment minister Bikram Keshari Arukh. This works out to double the present amount that the state government currently collects from the sector.
An inter-departmental committee under the chairmanship of development commission will look into those cases that may call for its intervention.
However, the exact ceiling of the area and its base price will be decided through the modality of the policy decision which will be worked out in next two months, Pati said, adding, public auction will be made after obtaining the leave of the Supreme Court.
