Jharkhand is all set to auction six mineral blocks located in the districts of Seraikela-Kharsawan, Giridih, and Palamu. The Mining and Geology Department has completed the auction process for these blocks. Among these, three gold mineral blocks are located in Seraikela-Kharsawan, one graphite block in Palamu, and one copper and one base metal block in Giridih. Jharkhand is one of the leading States in the country in copper mineral reserves, contributing 21% to the national copper production.
The auction is expected to generate significant revenue for the state government and provide employment opportunities through the establishment of mineral-based industries.
Mineral Blocks Ready for Auction in Seraikela, Giridih, and Palamu
The financial year 2024-25 has set ambitious revenue targets from key taxes. The auction of these blocks is a major step toward boosting the state’s economy. Some of the key revenue sources for the state in the financial year 2024-25 include Government land acquisition, land transfer, municipal taxes, and e-auction of smart city plots, among others.
Mineral Blocks Prepared for Auction
- Seraikela-Kharsawan: Hathan, Sokdi, and Rampur (All Gold mineral blocks)
- Palamu: Rewra (Graphite mineral block)
- Giridih: Barganda (Copper mineral block), Lupi (Base metal mineral block)
Graphite Block Auction and Employment Generation
In November 2024, the e-auction of the Ponchi Graphite mineral block in Palamu was successfully completed, marking a significant achievement for the department. This auction was completed at 752.05% of the expected price, highlighting the success of the auction process. The block is now in the process of receiving the Letter of Intent (LOI), which will allow the highest bidder to start mining operations. The mining of the Ponchi block is expected to create both job opportunities and additional revenue for the state.
CM’s Push for Enhanced Revenue Collection
After taking office, Chief Minister Hemant Soren emphasized the need for all departments to accelerate revenue collection and explore new sources of revenue generation. In line with this directive, the Mining and Geology Department has begun the auction of mineral blocks as a new source of revenue for the state.
Central Government’s Encouragement for Mineral Block Auctions
Last July, the Ministry of Mines at the Centre had urged the state government to auction several mineral blocks. The Ministry even warned that if the state failed to act, the Centre would proceed with the auction of these blocks itself. As a result, ten mineral blocks were identified for auction, and the Mines and Minerals (Development and Regulation) Amendment Bill, 2021 was passed in Parliament to facilitate this process.
Revenue Collection Falling Short of Target
Despite the focus on revenue generation, the state’s revenue department has faced challenges in meeting its targets. The target for revenue collection in FY 2024-25 is Rs. 1700 crore, but as of December 19, 2024, only Rs. 285.29 crore had been collected, which is just 17% of the set target.
Also Read: Coal Sector Leads Among Eight Core Indian Industries
