The Ministry of Mines has proposed to cancel the contract for such iron ore mines, which will not begin production until seven-eight months after the auction. It is also proposed to terminate the lease of such mines which cannot maintain minimum supply for three consecutive quarters. The Ministry of Mines has proposed to do this through some amendments to the mining rules. The Ministry is seeking comments from stakeholders on this.
Discounted Rules, 2016 to be amended
The Ministry of Mines has framed the Minerals (excluding nuclear and hydrocarbon energy minerals), Concession (Amendment) Regulations, 2021. The Ministry intends to amend the Minerals (excluding nuclear and hydro-carbon energy minerals), Concession Rules, 2016. The Ministry is seeking comments from the public, states / central provincial governments, mining industry, stakeholders, industry associations and other concerned people and entities on the draft amended rules. Many successful bidders of the mine were unable to resume production until after the expiration of March 31, 2020, after a 7-8 month auction and mining lease on their behalf.
Bank lending increased 3.2 percent in the first nine months of the current financial year
Moreover, many successful bidders have started production but they have not been able to maintain the level of production and supply under MCR Rule 12A, the ministry said. Of the 46 operating and operating mines closed on March 31, 2020, 24 are in Odisha. In addition, there are seven mines in Karnataka, six in Jharkhand, four in Andhra Pradesh, two in Rajasthan, two in Gujarat and one in Himachal Pradesh. All 24 mines in Odisha and four in Karnataka were auctioned last year.
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