Last week, the state successfully e-auctioned two of the biggest limestone blocks thus, earning a record revenue of Rs 10,500 crores from this sale. Aparna Arora, the Mines Secretary for state Limestone auctions as a big achievement for Rajasthan as it could provide a steady income of Rs 200 crores per year. Secondly, it’ll create more jobs in the mining and manufacturing sectors. Moreover, the money obtained from the auctions can be used in other sectors of development.
Mineral E-Auctions Open up Greater Possibilities for Industrial Growth in Rajasthan
Being a mineral-rich state, Rajasthan has a diversified economy. The mining sector, in particular serves as one of its main engines of economic growth. The state produces many minerals like silver, gold, copper, sandstone, limestone, lignite, rock phosphate and marble in great quantities.
These minerals are the backbone of many manufacturing industries and trades. Perhaps this is why Rajasthan is the second largest producer of Cement. The state accounts for one tenth of the total salt production in the country.
Limestone E-auctions have not just enhanced transparency in the auction procedure, but it has also smoothened out the participation channel for leading bidders. E-auctions create a global platform for companies to participate in the bid. This is crucial for infrastructure and industrial growth of the desert state.
Rajasthan Sets a New Record by Received the Highest Bids in the Last Limestone E-Auctions
Rajasthan government invited bids for the Nagaur and Chhittorgarh limestone blocks last year. After the auctions were successfully closed, Nagaur mine received the highest bid of the country, thus breaking all the previous auction records by a significant margin.
The limestone block obtained from Nagaur mine was proposed by Emami Cements. The price quoted by them was at least 13 times higher than the reserved price. According to a government official, it was also the highest bid amount for a limestone block auctioned in India.
Secondly, the Chittorgarh block, which is the biggest limestone block acquired from the mines is the heaviest in the country. It weighs approximately 175 metric tonnes. It was the second highest bid won by Dalmia Bharat Cements.
Both the blocks were carefully carved and prepared, based on industrial requirements. The authorities made sure to highlight their size, economics and land ownership patterns to attract more bidders.
In the 2-stage bidding process, the initial reserve price was set at Rs. 500 or 7% whereas the final bid was quoted at 60.09% that was 8 times the reserve price of Rs 35. With this, the state has bid the previous record quote of 58.95% that was won by Chhattisgarh earlier.
According to Ms. Arora, 6 cement companies were participating in the auction. The entire procedure was governed by the government, in close association with the Boston Consulting Group.
In 2016, around 14 out of 76 mines containing limestone, iron ore, diamond and gold were auctioned that fetched Rs. 59,500 crores revenue for the state.
This has not just opened up new avenues of growth for departments associated with mining, but it has also strengthened the goal set by the Rajasthan government—to make Rajasthan the top mining destination in the country. With this, the mining companies have accelerated their efforts to come up with more resources for the next e-auctions. This will give the required boost to state economy.
