Record mineral blocks auctioned in FY 2022-23

NEW DELHI: The Ministry of Mines has announced a record number of 105 auctions of mineral blocks (ML-53, CL-52) during the financial year 2022-23 across various major mineral states, leading the total tally to 259 auctions since the introduction of the auction regime in 2015. Among the states, Madhya Pradesh led the way during 2022-23 recording 29 auctions and iron ore emerged as the mineral with the highest number of auctions with 33 during this year. These auctions were for mining leases as well as composite licenses for all categories of minerals, including low-value minerals, medium-value minerals, high-value minerals, critical minerals, and precious metals and stones.

The Mines and Minerals (Regulation and Development) Act, 1957 (MMDR Act, 1957) is the legal framework that governs the development and regulation of mines and minerals in India. Effective from 12.01.2015, the MMDR Amendment Act, 2015 amended the MMDR Act, 1957.

The key feature of the amendment was the inclusion of a provision for awarding mineral concessions through auctions, replacing the previous “first-come-first-served” method. The objective of this amendment was to enhance transparency and eliminate any discretionary powers in the granting of mineral concessions at all levels.

Additionally, the auction method guarantees the revenue generated from the auction mines accrued to the state government. The auction system incorporates two forms of concessions, namely mining leases (ML) and composite licenses (CL), which encompass prospecting licenses as well as mining leases.