New Delhi [India], March 15 : Several states including Karnataka, Rajasthan, Maharashtra, Madhya Pradesh, Andhra Pradesh, and Chhattisgarh have taken proactive measures by issuing Notice Inviting Tenders (NIT) for the auction of Exploration Licences (EL).
According to a press release, this strategic move, announced on March 15, marks a significant milestone in the nation's efforts to tap into critical and deep-seated minerals, aiming to bolster economic growth and elevate India's position in the global mineral landscape.
The Exploration Licence regime, introduced through an amendment to the Mines and Minerals (Development and Regulation) Act, 1957, effective from August 17, 2023, aims to catalyze exploration and mining activities concerning 29 crucial minerals across the country.
Under this regime, Exploration Licences can be granted through auction for minerals specified in the Seventh Schedule.
The process for the grant of Exploration Licence has been formalized through the Mineral (Auction) Amendment Rules, 2024.
The pioneering efforts of Karnataka and Rajasthan set the stage for this nationwide initiative, with both states issuing notifications for the auction of Exploration Licences on March 6.
Karnataka initiated the auction of one block each for Gold, Copper, and Lithium in Raichur and Yadgir districts, while Rajasthan announced the auction of three blocks for Rare Earth Elements, Rare Metal, and Potash minerals across multiple districts.
Building on this momentum, Maharashtra, Madhya Pradesh, Andhra Pradesh, and Chhattisgarh swiftly followed suit, issuing NITs for additional EL blocks, thereby expanding the scope of the Exploration Licence regime across diverse geographical regions.
Maharashtra unveiled NITs for two EL blocks encompassing Lead, Zinc & Copper (Base Metal) and Diamond in Gadchiroli district. Meanwhile, Madhya Pradesh and Andhra Pradesh issued NITs for two and one EL blocks respectively, focusing on Diamond, Copper, Lead, Zinc, Rare Earth Element, and associated minerals, read the press release.
Notably, Chhattisgarh announced NITs for three EL blocks targeting Diamond and Rare Earth Group Minerals in various districts.
The concerted efforts of state governments, coupled with support from the Central Government, have propelled the launch of NITs for the auction of Exploration Licences.
To facilitate this process, the Ministry of Mines provided model tender documents for auction on March 1, offering guidance and support to participating states.
The Exploration Licence regime envisages active involvement from the private sector, aiming to expedite exploration activities for critical minerals such as lithium, copper, silver, diamond, and gold, read the press release.
Through the auction process, licensees will undertake reconnaissance and prospecting operations to identify viable mining areas, with revenue-sharing arrangements extending over 50 years based on auction bids.
Moreover, Exploration Licence holders will have the flexibility to transfer licenses after execution.
The auction process for Exploration Licences will utilize reverse bidding, with bidders quoting the percentage share they will take in the auction premium payable by the Mining Lease holder.
The bidder offering the lowest percentage bid will be selected as the preferred bidder for the exploration licence.
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