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Cabinet approves ordinance for auctioning of non-coal mines

The Cabinet has approved an ordinance for auction of iron ore and other minerals, therefore opting the emergency route that was adopted earlier for coal, insurance and land acquisition reforms. The ordinance would pave the way for introduction of competitive bidding for allocation of iron ore and other non-coal mines. The ordinance will amend the mining laws to pave the way for more transparent allocation of minerals. Further, it will also enable creation of District Mineral Funds for the welfare of the project-affected people and enable greater decentralisation of power to states for allocation of resources.

The need for taking the ordinance route was felt as the government was finding it difficult to allocate mines, because the Mines Ministry could not table a Bill in the winter session of Parliament to amend the Mines and Minerals (Development and Regulation) Act, 1957.

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