Karnataka: Auction of ‘C’ mining leases to top agenda at GIM?

Ballari: With the dismissal of review petitions filed by erstwhile lessees of category ‘C’ mining leases, the state government is said to be keen on the auction of iron ore reserves in category ‘C’ mining leases to attract investments in the steel industry.

According to sources, ‘C’ category mine auction will be a major attraction in the Global Investors’ Meet (GIM) slated to be held in November this year.

While dismissing nearly about 35 review petitions challenging the April 18, 2013 order of the apex court cancelling the license of 52 ‘C’ category mines for gross illegalities, on  July 30, the Supreme Court had spelt out guidelines for auctioning 15 ‘C’ mines in the first phase within 32 weeks, preferably within 26 weeks.

Congress MLAs Anil Lad and Santosh Lad operated M/s V.S. Lad and Sons, BJP MLA B.S. Anand Singh operated M/s SB Minerals, Deccan Mining Syndicate (P) Ltd. M/s Lakshminarayan Mining Co. M/s Tungabhadra Minerals Pvt. Ltd are among the prominent 15 mines set for auctioning.    

Further, in an affidavit to the Supreme Court, Mr Nilaya Mitash, Secretary, Commerce and Industries Department (Mines) has submitted to the apex court that apart from the 15 mines, auction of 9 mines whose size is very small may be kept in abeyance and of the remaining 27 mines the exploration work may be permitted in two phases.

In the first phase, 15 mines [10 in Ballari, 3 in Tumakuru and 2 in Chitradurga districts] are proposed for exploration. The apex court has permitted the state to proceed with exploration work subject to the final decision on the production ceiling-30 million tonnes per annum fixed for the state.

The apex court has set guidelines for auction of ‘C’ mines where only the end-users engaged in production of sponge iron and/or pig iron and/or steel and/or pellets will be eligible to take part in the auction. The end-users will include public sector undertakings.