Page 20 - Mines and Minerals Reporter eMagazine - Volume October 2021

INDUSTRY ANALYSIS

ii. The deep rooted problem lies in the inability of initiating
auctions by the Governments organs, which are not attuned
to do so are also not under any legal compulsion. Lack of avail-
ability of blocks is worrisome.
iii. Blocks on Auction
a. Online Exploration Data - Since the exploration data of GSI,
MECL & State DMGs are already online, they can be used by
businesses to identify blocks required for their businesses.
b. No exploration requirement - Since the primary purpose
of auctions is fair & transparent grant with equitable playing
field, block having any level of exploration be put up for
open bidding on e-auction.
c. Only Check — laid down norms for timebound exploration,
else penal provisions.
d. Faceless Auctions - Government/State should provide an
online portal for enabling any entity for selecting an area and
exploring company has been embedded in the mineral regime raising it for auction. The government may also continue to
by way of section 11(1) of the MMDR Act, was again legiti- auction the blocks identified by it.
mately protected in the 2015 amendment by way of section
10A(2)(b), even when all the applications un-
der 'First cum First Serve' were made ineligi-
ble.
ii. In such blocks, tangible exploration has
already been done, mineral has been estab-
lished as per prescriptions of law, and now
are ready for mining.
iii. It is sought to be illegitimately forfeited in
the guise of auction, as if these are the only
blocks available for auction and
rest of the exploration done by the Central &
state govt agencies for these many years has
not yielded sufficient blocks for auction.
iv. Any such illegitimate attempt on part of
the policy makers will not stand the legal grounds in the court 4. Utilization of DMF funds in line with the principles enunci-
of law and would be rescinded under the common law doc- ated in PMKKKY
trine of `promissory estoppel'. i. The funds for DMF are being diverted from the essence of
v. On the contrary, the time bound grant of such cases would which it was created - to work for the interest and benefit of -
enable start of mining in these low hanging fruits. About 30 persons, and areas affected by mining related operations. The
such cases fully recommended by the State Govt. and State funds are being diverted to large projects which have little rel-
level committee having officials of IBM & GSI, are still kept evance to the object created.
pending for 2-3 years in Ministry of Mines of Central Govt. ii. Mandatory Geographical spending - The DMF spending may
Many such cases have been informally stopped from being be made more centred to the mining areas stipulating that 70
sent by the Stategovts. -80% of the money allocated for the "High Priority Areas" has
vi. Bringing in expertise & investment in exploration is most to be spent in the vicinity of 20 km radius of the particular
essential for long term growth of mineral sector, which is also mine. And about 50% of the Other Priority Area allocations
unlikely to come without giving the preferential right of min- should also be mandated to the
ing to the exploring entity. iii. DMF Spending by Company itself like CSR - It can be con-
vii. Thus, these cases should not be thought for cancellation sidered to not collect the DMF by the Government, instead
but granted within 30 days. mandate it to be spent directly by the corporate as being done
in case of CSR, following the stipulated guidelines.
Real Ease Of Doing Business by open auctions — a. This will improve the spending control which is currently
at about just 20% of the money accumulated has been spent.
i. It necessitates that a block can be chosen by the entrepre- b. Further, the corporate will behave in a socially responsible
neur and the State should have the compulsion to auction the manner and would help in making a better relation with the
same. local society.

18 MINES & MINERALS REPORTER / OCTOBER 2021