Mine licences may be given to ‘first in line’

As per Sections 22 and 23,read with Section 13(1) of the draft,request by end-users Tata Steel,Balco,ACC or state-run National Mineral Development Corp for prospecting licence for an area “where reconnaissance has been conducted and sufficient evidence of enhance mineralisation has been established” would be rejected if they apply a day after the first applicant.

Such rejection would be irrespective of better commitment on prospecting or mining operations,rehabilitation schemes,downstream investments or revenue sharing.

But failed applicants could buy the licence from the successful licencee as the draft bill makes them transferable for a consideration,just like telecom licences. Presently,a licence is transferable without any consideration.

Under the proposed rules,“competitive bidding” for prospecting licence can be resorted to by the states only if firms don’t show interest and hence do not apply for an acreage. This goes against the Hoda Committee which had recommended that the current option of competitive bidding for direct prospecting licences be continued and that a value adder be preferred over non-value adder.

Handique has opted for subjectivity and arbitrariness on the grounds that “if a mineral bearing acreage for which someone has directly applied,is offered for competitive bidding,the investor confidence shall get totally destroyed”. This is despite the universally-accepted “competitive bidding regime” proposed for licensing of coal-bearing areas.