Ministry of mines to invite bids for mine lease

NEW DELHI: The ministry of mines will start processing applications for mining leases after a seven-month long delay caused by the 2G controversy and the subsequent Supreme Court ruling on auctioning of scarce natural resources.

The decision will help the ministry to clear the backlog of applications and help address investor worries over the slow pace of clearances. Senior ministry official said that leases for exploration and mining of major minerals, excluding coal, such as iron ore and bauxite are forwarded by states for centre's approval.

Since Supreme Court's order of cancellation of 2G telecom licences in February 2012, the mining ministry has sought three legal opinions. "The policy contained in the MMDR Act in respect of grants of the reconnaissance permits, prospecting licenses or mining leases, is aimed at ensuring optimum exploitation of the minerals, which is clearly necessary for industrial growth," says Rohinton F Nariman, solicitor general of India, who resigned from his post on February 4. "It cannot be said that the policy or law in question is patently unfair to the extent that it falls foul of the fairness requirement of article 14 of the Constitution," he adds.