Handing Over Explored Block of Auctioned Mines to States



Handing Over Explored Block of Auctioned Mines to States
                      The Government of India has not completed the process of auction for mines. All auctions for mines are to be conducted only by the respective State Governments. The necessary rules for enabling the auction of minerals, viz. Mineral (Evidence of Mineral Content) Rules & Mineral (Auction) Rules, have been framed by the Ministry and have been already notified in the official gazette.
The Ministry has also formulated a ‘Model’ tender document (including the models of notice inviting tender & information memorandum) & MDPA (Mine Development and Production Agreement), to facilitate the State Governments to expedite the auction process.  The process of auction of mineral blocks has been initiated by some State Governments. Geological Survey of India (GSI), an attached office of Ministry of Mines and Mineral Exploration Corporation Limited (MECL), a Public Sector Undertaking under the administrative control of Ministry of Mines have been engaged in exploration of minerals in the country. The Central Government has handed over geological reports of 75 blocks explored by GSI and 62 blocks explored by MECL to the respective State Governments. The details of these blocks are as under:

Name of the exploration agency (s)
No. of geological reports of the blocks
State (s)
Expenses incurred in exploration of these blocks
GSI
75
Madhya Pradesh, Maharashtra, Jharkhand, Rajasthan, Odisha, Karnataka, Telangana, Gujarat, Andhra Pradesh,
Rs 103.45 Crore ( up to October, 2015)
MECL
62
Rajasthan, Jharkhand, Andhra Pradesh, Madhya Pradesh, Meghalaya, Odisha, Kerala, Karnataka, Maharashtra, West Bengal, Nagaland, Arunachal Pradesh, Assam
Rs 350 Crore
Total
137

Rs 453.45 Cr.

Mineral Exploration Corporation Limited (MECL) has informed that they have estimated more than 2341 Million Tonnes of mineral resources in handed over 62 geological reports of the blocks to the respective State Governments of which the details are given in Annexure.
                                                                                  

Annexure

GEOLOGICAL REPORTS OF BLOCKS HANDED OVER TO STATE GOVERNMENTS BY MECL

TOTAL RESOURCES                                                               2341 m.t.
This information was given by Minister of State Sh. Vishnu Deo Sai in reply to a question in Rajya Sabha today.
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Slurry Pipeline to Carry Iron Ore from Bailadila to Vizag
The slurry pipeline to carry iron ore from Bailadila to Vizag has been planned in two phases. The first phase is of 138 Km. This has been planned to be completed in 24 months after the obtaining all statutory clearances.

The slurry pipeline system is an alternate mode of transportation of iron ore fines in slurry form, after fine grinding and its concentration.

The capital expenditure of the first phase of the slurry pipeline system from Bailadila to Nagarnar is around
4,000 crores and the second phase from Nagarnar to Vizag is around 6,000 crores.

The portion of the iron ore fines transported in slurry form will be drawn at Nagarnar for making pellets in the Pellet Plant at Nagarnar and the remaining portion will be transported to Rashtriya Ispat Nigam Limited, Vizag for making pellets.

This information was given by Minister of State Sh. Vishnu Deo Sai in reply to a question in Rajya Sabha today.
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Contributions to District Mineral Foundation (DMF)
Every holder of a mining lease or a prospecting licence-cum-mining lease shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount at the rate of ––

(i) ten per cent of the royalty paid in terms of the Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 in respect of mining leases or, as the case may be, prospecting licence-cum-mining lease granted on or after 12th January, 2015; and

(ii) thirty per cent of the royalty paid in terms of the Second Schedule to the said Act in respect of mining leases granted before 12th January, 2015.

The contribution to DMFs has been made effective from 12th January, 2015. The contributions made to DMFs are collected by the State Governments and the details in this regard are not maintained centrally.

As per sub-section (3) of section 9B of MMDR Act, 1957, the composition and functions of the DMF shall be prescribed by the State Government. Therefore, the composition of DMF, including as to whether it would have representatives of the local communities, is a matter which is under the legislative and administrative jurisdiction of State Government. The details in this regard are not maintained centrally.

This information was given by Minister of State Sh. Vishnu Deo Sai in reply to a question in Rajya Sabha today.


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