Aggressive bidding for mineral resources in the country has started to taper and the sector has started coming closer to reality, said Arun Kumar, Secretary, Ministry of Mines.

Speaking at the sidelines of the CII Mining Summit, Kumar said. “When something starts, you have euphoria about it and then realism sets in. The percentage of revenue sharing which we are seeing in the auction in the mineral sector has been coming down.”

“On limestone, it is now around 25 to 30 per cent, which is a fair take for the state. We would like that there is a fair take for the State government, so that industry grows, as well as economic activity and revenue of States grow,” he said.

The lower revenue commitment is a sharp contrast compared to the earlier revenue proportions bidders had promised. “In the limestone sector, people have gone to commit 80-90 per cent revenue share. So, there is moderation now,” Kumar added.

In September this year, the Ministry of Mines had sought suggestions to amend the Mineral (Auction) Rules, 2015. The proposed Mineral (Auction) (Amendment) Rules, 2017 had tweaked the eligibility clause for bidders, among other changes.

Kumar said that he expects the revised rules to be notified this month.

“This year we have successfully auctioned 12 mines and with the amendment to the auction rules coming in by November end, we expect a higher number of mines to get auctioned. This is because the States are waiting for the amendment to be notified,” he said.

He also said that the government is also close to amending the law that governs offshore mineral exploration.

“We are looking at amending the Offshore Mineral Act. We had put out a draft amendment; there were comments and public consultation. The government is in the process of firming up its views on that,” he added.