President approves ordinance to pave way for mine auctions

President Pranab Mukherjee on Monday approved the much-awaited ordinance for auction of iron ore and other minerals, which will help the government bring in a system of competitive bidding for mine allocations. It will also allow it to create District Mineral Funds for the welfare of project-affected people.

“The President has given his assent to the Mines and Minerals (Development and Regulation) Ordinance 2014, cleared by the Union Cabinet at its meeting January 5,” a source said.

The ordinance will help introduce competitive bidding in allocation of iron ore and other non-coal mines. The government was finding it difficult to allocate mines as the mines ministry could not table a bill in the Winter Session to amend the Mines and Minerals (Development and Regulation) Act 1957.

It will also enable greater decentralisation of power to states for allocation of resources.