The government has announced the cancellation of the auction for 13 out of the 20 critical mineral blocks initially put up for sale, citing a tepid response from potential bidders.
The decision, announced on Friday, reflects the subdued interest witnessed during the e-auction process, prompting authorities to reevaluate the strategy for mineral resource allocation. According to a statement issued by the mines ministry, the e-auction process for the 13 mineral blocks was annulled due to a lack of bids for two blocks and insufficient participation from technically qualified bidders (TQB) for the remaining 11 blocks. This setback underscores the challenges faced by the government in stimulating investor interest and driving competition in the critical mineral sector.
Despite receiving a total of 56 physical bids and 56 online bids for 18 out of the 20 blocks initially offered, the response fell short of expectations, prompting the cancellation of the auction for the underperforming blocks. In response to this development, seven of the cancelled mines have been earmarked for inclusion in the upcoming third round of auctions, while the fate of the remaining blocks remains under consideration. The completion of the second round of auction for six blocks proceeded as scheduled, albeit against the backdrop of subdued demand witnessed in the broader auction process. Additionally, the fate of the Kundol, nickel, and chromium block in Gujarat awaits deliberation by the designated officer, underscoring the need for prudent decision-making in resource allocation.
Earlier this month, the government initiated the third tranche of auction for critical and strategic minerals, signaling its continued commitment to harnessing mineral resources for economic growth and industrial development. With a total of 38 critical and strategic minerals earmarked for auction to date, the government remains steadfast in its efforts to promote transparency and efficiency in mineral resource management. The cancellation of the auction for 13 critical mineral blocks underscores the imperative for recalibrating auction strategies to attract investor interest and optimize resource allocation. As the government navigates the complex terrain of mineral resource management, ensuring a balance between promoting investment and safeguarding national interests remains paramount in fostering sustainable growth and development.
