Mines and minerals are the properties of the state and the common man has the first right over the benefits accruing from them. After the humongous mining scam in the state there was a decision to allocate mine leases through auction. The objective was to bring more transparency in operation and enhance revenue for the state. Following the change in the procedure of allocation of mines, few mines have been auctioned and the projected revenue seems to be much higher than what could have been obtained otherwise by the previous methodology.
However, while fixing the eligibility of the bidders during auction, the govt didn’t carefully eliminate the bankrupt, defaulters and the blacklisted companies. As a result most of the mines given on auction have been granted to companies either convicted in illegal mining or blacklisted defaulters. The purpose of bringing transparency to operations will be defeated as shady players come into operation, and adoption of unfair means and manipulation by these companies can’t be ruled out.
The government should fix strict eligibility criteria while auctioning mines to keep dubious elements away and ensure that optimum revenue is accrued and used for the benefit of the larger public.
