Bhubaneswar : The Odisha cabinet Monday decided to give mining rights for all major minerals through public auction, barring coal, and those mines pending second and subsequent renewals in the state.
The state government expects to garner above Rs.10,000 crore revenue annually, which is double of that generated currently.
However, the public auction will not be applicable to those leases that have already been issued grant orders and are awaiting execution of lease deed by the state government after being approved by the Centre, Chief Secretary G.C. Pati told media.
Pati said the mining leases awaiting the approval of the first renewal, or those granted express order for renewal and all existing leases of state and central PSUs will also not be put to auction.
He said the mines recommended for different companies in pursuance of an agreement or memorandum of understanding will not be put for competitive bidding in the state.
The state government has recommended several mines for different companies, including Posco, to the Centre, which are awaiting prospecting licence or mining licence.
The chief secretary said the mines meant for captive and non-captive use will be auctioned differently.
While the government expects to finalise the modalities for the auction process within two months, leasing of major minerals through public auction will be made after obtaining leave of Supreme Court by filing appropriate petition, said the chief secretary.
Chief Minister Naveen Patnaik termed the decision as historic.
“This is a historic decision in brining transparency in allocation of natural resources by putting an end to the hitherto the monopoly system and concrete step forward for progressive economic reform,” he said.
He said that while the government would undertake welfare measures from the revenue garnered from the auction, it would facilitate the ongoing process of industrialization through the availability of raw material.