Auction mining rights

Auction mining rights
There is no other way to stop corruption...

...an industry body said to represent mining interests, which has come out in opposition to the policy of auctioning mining rights. This seems quixotic, when the mining of oil and gas fields has been accepted policy the world over. The ground rules under which contracts are signed are well established, and there is no reason why prospecting for coal or bauxite should be not be dealt with in the same way, and why proven reserves should not be auctioned to the highest bidder...

As it happens, the government decided more than a year ago that auctions are the right way to go—a stance that China too has taken. The policy adopted in March 2008 said that mining leases would be auctioned to actual users and that exports would be encouraged in value-added form (in other words, the country should export steel, not iron ore). It is not clear that the legislative changes required to give effect to this policy have been carried out; even if they have not, that is only a procedural hurdle...
To Read the complete article by T N Ninan in the Business Standard Click Here.