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The Ministry expects that the first phase of mines auction will be over

“States have put 31 blocks to go for auction in the current auction.States have put 31 blocks to go for auction in the current auction. By month-end, we expect 18-19 more to come and in the next 1-2 months another 16 are expected.” He further said that 2015 has been a challenging year for the industry and the market sentiment was also low, both in India and globally. Mines were closed due to after-effects of various judicial pronouncements such as the Shah Commission report on illegal mining, he added. “Mines industry is passing through a distressed and depressed phase. The Ministry expects that the first phase of mines auction will be over by March 2016,, Kumar said while adding that the government expects to auction 65-70 mines. Besides, the spectre of demand slowdown in China, the world’s biggest metal consumer, led to the markets across the world including India getting flooded with cheap imports of steel, aluminium and other finished products — a development that has adversely impacted the domestic mining industry. Supply is outstripping the demand. Summing up the sentiments, Mines Secretary Balvinder Kumar told PTI. But, 2015 would still be remembered as a “depressed and distressed” year for the industry, when it saw earnings dive south on account of excess production and subdued demand, which led to prices of some commodities, like that of iron ore hit the ten-year low levels. Other initiatives like the NMET, District Mineral Foundation (DMF) and rules and guidelines regarding mineral concessions and others will play a major role in increasing ease of doing business,” Kumar noted.

The major steps taken by the government in 2015 to revive the industry included passage of the Mines and Minerals (Development & Regulation) Act and initiating the process for starting auction of mines bearing minerals such as iron ore, bauxite and limestone. “But, if you look at the government’s efforts, we have tried to restore confidence of the mining industry and the biggest step is passage of the MMDR Act in March. So by end of this fiscal 65-70 mining blocks can be auctioned,” he said.. 2016 will be a tough year for the industry as China aluminum scaffold indicators on the global level are also not very encouraging. A number of policy measures are in works to revive the sector that saw earnings take a beating due to softening prices and subdued demand, but experts do not see any imminent revival without a global commodity market recovery. The government also notified National Mineral Exploration Trust (NMET) to encourage mineral exploration and followed up on various rules and guidelines that can help in improving the the ease of doing business for miners. New Delhi: India’s multi-billion dollar mining industry faces a “tough” 2016 ahead amid weak global markets, even as the government plans to fast-track auctions and check illegal mining with satellite-based surveillance. Another major initiative include checking illegal mining in the country is a partnership with Indian Space Research Organisation (ISRO) for satellite surveillance of mineral blocks.

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