638 blocks of minor minerals to be auctioned: Gujarat govt

Gandhinagar: Energy minister Saurabh Patel today announced online auctions of 638 blocks of minor minerals in order to prevent illegal mining activities in the State. Barring 22 cases, majority of blocks are on government land. Following are the highlights of his briefing:

– Barring Gir Somnath, all 32 districts will have auction of minor mineral lease. Gir Somnath is barred because it has forest area where mining is now permitted as per the guideline of the Supreme Court.

– In case of private land, the auction process will start only after farmer gives permission letter to government for auction. Even during the auction process, if farmer finds it is beneficial to him, then only the auction process will continue. Farmer will be able to do agreement with bidder for surface rights for additional income.

– Giving example of auction process, minister Saurabh Patel said, in case of major minerals, the state government auctioned three blocks for 30 years period. The government of Gujarat could earn Rs 6,000 crore through royalty in this process but it is poised to receive Rs 9,500 crore additional premium in addition to Rs 6,000 crore. Thus the transparent manner of auctioning the blocks if beneficial for the state.

– During the UPA government, lease agreement would be extended to 30-40 years period. As per the supreme court guideline and new laws, maximum extension will be given upto year 2030 only.

DeshGujarat