Centre Plans To Auction 17 Non-Operational Mines Surrendered By PSUs

In 2021-22, the total revenue accrued from auctioned mines is more than Rs 25,170 crore

Coal and Mines Minister Pralhad Joshi said the government decided to take away all those mines from the PSUs which do not get into operation even after the lapse of five to six years and put them on sale. 

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Coal and Mines Minister Pralhad Joshi has said that the central government plans to put on auction 17 mines surrendered by public sector undertakings (PSUs) which could not put the blocks into operation, the PTI reported.

The statement comes in the wake of the government making efforts to ramp up domestic coal production to ensure adequate availability of dry fuel to different sectors. "Just the-day-before yesterday (Sunday) I got 17 blocks back and they are very good blocks and I am putting them for auction now," Joshi said.

The minister, speaking at a conference on the Indian minerals and metals industry organised by NMDC and FICCI, said many PSUs in the country in sectors such as coal were sitting on big mines.

According to the report, the government decided to take away all those mines from the public sector undertakings which do not get into operation even after the lapse of five to six years and put them on sale. "I talked to the chief ministers and ministers of a few states and asked them the reasons for sitting on mines. These mines could not get into operation even after 10 to 15 years," Joshi said.

Joshi also said that his ministry was in deliberations with the Ministry of Environment and Forest on how the exploration of mines can happen without cutting down trees.

Through an amendment to MMDR Act in 2021, private exploration agencies which have been accredited are allowed to carry out exploration without prospecting licence upon their notification and so far nine private exploration agencies have been notified for this purpose.

In 2021-22, the total revenue accrued from auctioned mines is more than Rs 25,170 crore. To be future-ready, the mines ministry, he said, is also exploring sources of minerals like lithium, cobalt, nickel, rare-earth elements, lead, zinc and others.

"With this view, I visited Australia last month to secure critical minerals that will help the country transition to clean sources of energy," Joshi added.