Union government asks Telangana government to auction at least six mineral blocks by Jun 30

The process of allocating mineral blocks through auctions began in 2015.

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Directed to auction mines

In a recent letter to the Telangana government, the mines ministry asked the state to notify a minimum of six blocks from the 11 for auction by 30 June, sources said.

The ministry warned that failure to do so would force the Union government to begin the auction process.

As per the amendment in mining rules made in 2021, the Centre has the power to put on sale the mineral blocks in case a state government fails to auction the mines within the mutually agreed period.

Since the introduction of the auction regime, 354 major mineral blocks have been auctioned in the country. Of these 354 auctioned blocks, production has begun in 48 mineral blocks, amounting to significant increase in the revenue earnings to those states which have auctioned the mineral blocks, sources said.

Expeditious auction of the available mines will fully harness the mineral potential of the state for economic growth and welfare of the people as the revenue generated will accrue to the state government. Moreover, this will also create additional employment in the state, the sources added.

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