Nirmala Sitharaman on 16th May addressed in her speech about some important points that are favorable to the economic growth. “500 blocks of minerals are to be auctioned in a composite exploration-cum-mining-cum-production regime,” Finance Minister Nirmala Sitharaman told media persons in New Delhi.
Also, a joint auction of bauxite and coal blocks to be initiated because it will enhance the aluminium industry’s competitiveness. This will help the aluminium industry reduce electricity costs. She said the distinction between captive and non-captive mines will be removed.
The transfer of mining leases and sale of surplus unused minerals initiates better efficiency and production. In the coal sector, the government will allow commercial mining and nearly 50 blocks to be offered instantly. There will be no eligibility conditions and anybody can bid, there will be only upfront payment with a ceiling.
Against the prior provision of auctioning only the fully explored coal blocks. Now the partially explored blocks will put for auction. Apart from allowing private sector participation in exploration. This is going to take place via a revenue-sharing mechanism instead of the regime of a fixed rupee per tonnes.