NEW DELHI | March 09, 2017: Mines auction is likely to fetch Rs 1.5 lakh crore to states' kitty in 2017-18, a top official said today.

The first tranche of auctions, which started last year, saw bidding of 21 mine blocks that fetched Rs 73,000 crore to states.

"We are looking at auction of 100 blocks in 2017-18. This should conservatively fetch about Rs 1.5 lakh crore to states and the revenue will accrue to them in a span of 50 years," Mines Secretary Arun Kumar said.

The first successful auction took place in February 2016, with two small limestone blocks in Chhattisgarh going under the hammer. The mineral-rich state will generate about Rs 18 crore from the two blocks over the next 50 years.

Since then, 21 mines containing iron ore, limestone, gold and diamond etc have been auctioned.

The lease to mine minerals from these blocks is for 50 years and the total earnings include royalty and contributions for the District Mineral Foundation and the National Mineral Exploration Trust.

Kumar said participation is likely to be increased as more mines including limestone, iron ore and gold mines will be put for auction.

The Mines Ministry has already facilitated the auction process extending support from IBM and GSI and various PSUs such as MSTC, MECON, MECL and SBICAP.

Jharkhand, Chhattisgarh and Odisha are among the states preparing for auction of mineral blocks like iron ore, limestone and bauxite in the next financial year.

The blocks to be available for auction in future, which are being explored under the National Mineral Exploration Trust (NMET) or by GSI or by MECL, are being explored by entities under the New Exploration Policy.

(Source: http://economictimes.indiatimes.com/)