The statement comes in the wake of mining body FIMI pitching for implementation of the original system.
The government will not go back to the first-come, first-served system for granting mining leases as auction regime is law of the land, Mines Minster Pralhad Joshi on September 24 said.
The statement comes in the wake of mining body FIMI pitching for implementation of the original system.
"We will not be able to go back to first-come, first-served basis. The law of land is very clear," Joshi said here.
Echoing similar views, Mines Secretary Anil Mukim said auction was a very transparent process and state governments were fully geared to carry forward this process.
"It has been four years since we made MMDR Act and introduced the auction procedure instead of the original first-come, first-served provision. I am happy to note that since we have introduced the auction regime the results have been very encouraging," he said.
More than 65 mines have been auctioned and nine mines have been operationalised, he added.
"A couple of weeks back we had a detailed meeting with all state governments. And my interaction...was very very reassuring and I have absolutely no doubt that in times to come most of these mines, in fact more than 95 percent of these mines are going to get operationalised in next 3-4 years and around 20-25 mines we expect them to be operationalised within this financial year," he explained.
As far as environment and forest clearances are concerned, he said, the process has been streamlined.
On Monday, FIMI said in view of the dampening results of auctioning of mineral blocks so far, the private sector should be the main source of investment in reconnaissance, exploration and mining by following the system of first-come, first-served for granting mineral concessions.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
