TEAM HERALD
PANJIM: With the Union Mines Ministry considering adoption of e-auctioning for sale of extracted iron and manganese ore for all the mineral rich States of India, the Ministry has sought comments from Goa government for adopting the procedure, which is currently implemented in the State following Supreme Court order.
The Ministry is examining the issue with the sole aim to overcome the under reporting of selling prices of minerals.
The Ministry in its May 5 letter has asked Goa government to give its comment and views over adopting e-auction method for selling of ore, as recommended by Justice M B Shah Commission of Inquiry. The Ministry has clarified that the e-auction of iron and manganese ore will be examined in consultation with state governments and concerned central ministries.
The letter signed by Secretary Mines Pawan Kumar Sen has sought reply latest by May 14, when the Ministry’s Coordination-cum-Empowered Committee (CEC) on Mineral Development and Regulation would be meeting to deliberate on the methodology to be adopted along with timelines for its implementation.
A senior mines official confirming about the letter said ‘since the e-auction procedure has been adopted in Goa, the views of the state are of utmost important in deciding the matter’.
The Ministry has said that it is of the view that e-auction of extracted minerals has the advantages of transparency, optimum price-discovery and realization of correct royalty to the States.
Supreme Court has ordered adoption of e-auction procedure for selling iron ore in Karnataka and Goa. In Goa, two phase of e-auction have already been undertaken with State selling nearly 1.6 million metric tons of ore at a price value of Rs 268 crore. The third e-auction has been slated for May 12.
The Ministry has also asked CEC to identify the process for establishing e-auction procedure for sale of the extracted minerals.
The idea emerged following the issue raised by the Gujarat government before the CEC about under-reporting of sale of prices of iron ore resulting in loss of royalty to states. Taking serious note of the matter, the Ministry stressed that the issue needs proper mechanism and monitoring like through e-auction.
