Government to release draft changes in mineral auction rules in August

NEW DELHI: The government will bring out proposed changes in mineral auction rules this month as it looks to make sale of mines more effective, a top official said today.

The government looks to remove "small" glitches in the rules highlighted by bidders and industry associations, Mines Secretary Arun Kumar was quoted as saying in a statement by Assocham.

"The mines ministry will bring out proposed draft changes to the Mineral Auction Rules, 2015, within August with a view to make mineral block auctions more effective thereby removing the small glitches highlighted by the bidders and industry associations....," the statement quoted Kumar as saying.

"When we put it out on the net, there would be again an occasion to give in your suggestions," Kumar said.

The secretary further said that definition of captive will stay for the existing leases but for auctions the government will see how it can tweak the system legally to allow for a certain percentage of the minerals to be traded as well, according to the statement.

A total of 29 mineral blocks with a combined estimated resources of Rs 1.56 lakh crore have been auctioned so far, the government had earlier said.