Allowing Private Sector in Mineral Exploration

By | March 16, 2016
(Last Updated On: March 16, 2016)

Allowing Private Sector in Mineral Exploration

TheMines and Minerals (Development and Regulation) Amendment Act, 2015 (MMDR Amendment Act, 2015) has,besides Mining Lease (ML), two specific provisions for mineral exploration viz. Non-exclusive Reconnaissance Permit [NERP] and Prospecting License-cum-Mining Lease [PL-cum-ML] through which private sector can participate in mineral exploration.

The allocation of mineral blocks through auction is carried out by the respective State Governments. The details of the mineral blocks auctioned to private sector bidders are as follows:

S.No.BlockAuction for ML/


StateMineralSuccessful Bidder


1.Baghmara, Balodabazar-BhataparaPL-cum-ML 






GoldVedanta Ltd.
2.Kesla, RaipurMLLimestoneCentury Cement
3.Karhi Chandi, Balodabazar-BhataparaMLLimestoneShree Cement
4.Harihaspura Block-I, RamgarhPL-cum-MLLimestoneBurnpur Cement Plant
5.Harihaspura Block-II, RamgarhPL-cum-MLLimestoneBurnpur Cement Plant
6.Ghoraburhani-Sagasahi, SundargarhMLOdishaIron-oreEssar Steel

On operationalization of the auctioned blocks, the bidder is required to pay (i) auction amount (as percentage of value of the minerals dispatched) in addition to (ii) royalty,(iii) contribution to National Mineral Exploration Trust (NMET)and(iv) contribution to District Mineral Foundation (DMF) as per MMDR Amendment Act, 2015&relevant Rules framed thereunder.

This information was given by the Minister of State Shri Vishnu Deo Sai in reply to a question Rajya Sabha today.

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