The mines ministry has urged the Telangana government to auction at least six mineral blocks by the end of June, highlighting the state's failure to auction any blocks in the past nine years. Despite receiving geological reports for 11 blocks, including five iron ore mines, five limestone blocks, and one manganese block, Telangana has not initiated any auctions.
The process of allocating mineral blocks through auctions began in 2015, but Telangana remains inactive despite repeated reminders from the mines ministry. In a recent letter, the ministry emphasized the need to auction a minimum of six blocks from the identified 11 by June 30. Failure to comply will prompt the Centre to commence the auction process independently.
An amendment in mining rules in 2021 empowers the Centre to auction mineral blocks if a state government fails to do so within an agreed period. Since the introduction of the auction regime, 354 major mineral blocks have been auctioned nationwide, with production commencing in 48 blocks. This has significantly boosted revenue for states that have conducted auctions.
The ministry stressed that expeditious auctioning of available mines will fully harness Telangana's mineral potential, driving economic growth and benefiting the state's populace through increased revenue and employment opportunities. The urgency to auction these blocks aligns with the broader objective of maximizing the state's mineral wealth for public welfare and economic development.
