Question : Time Lag between Auctions and Mineral Extraction

(a) whether the time lag between auctions and actual mineral extraction would run into about three years or more given the historical delays in obtaining statutory approvals and if so, the facts thereof;

(b) whether non-extension of leases would lead to disruption in raw material supplies to steel and other industries, resulting in chaos and litigation;

(c) if so, whether there is a need to extend the validity of merchant mining lease to lapse by March 2020;

(d) if so, the steps taken by the Government in this regard; and

(e) whether the Government is staring at a revenue loss if merchant mines are granted extension and if so, the response of the Government thereon?

THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS
(SHRI PRALHAD JOSHI)

(a) On successful completion of the auction process, the successful bidder is mandated to seek statutory clearances viz. environmental and forest clearances before signing the lease deed and taking up mining operation. Ministry monitors the progress of the grant of statutory clearances, signing of lease deeds and operationalization of mines.

(b) to (e): The mining leases expiring in March, 2020 are to be reallocated through auction. To expedite the auction of mines which are due to expire on 31st March, 2020, General Exploration (G2) over the entire mineralised area under the mining lease has been completed in working mines. The modality for seamless grant of Environment Clearance and Forest Clearance in respect of these mining leases has been finalized in consultation with Ministry of Environment, Forest and Climate Change. Therefore, there would be no delay in grant of environment and forest clearances. No disruption in supply of raw material to steel and other industries is envisaged.

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