Telangana News | Telangana Govt to Conduct E-Auction for Limestone Mining Bidding Process

Hyderabad: The Telangana Department of Mines and Geology has announced plans to conduct an e-auction for selecting lessees for limestone mining, marking a significant shift in the process for allocating one of the state’s key mineral resources.

This decision comes in response to a directive from the central government, issued two months ago, instructing the State to auction 11 limestone blocks in the first phase. The central government had set a deadline of June 30 for the auction of some of these blocks, even warning that if the State failed to comply, it would take over the auction process itself.

In response, the Telangana State government requested more time and, after receiving approval from Chief Minister A Revanth Reddy, initiated the tender process for leasing three limestone blocks on Friday. These blocks, covering approximately 446 hectares of forest area, are located in Saidulanama, Sultanpur, and Pusupulabodu in Suryapet district.

According to officials, the three blocks contain an estimated 193.76 lakh tonnes of limestone deposits, deemed of sufficient quality for cement production. Historically, the State has prioritized applicants who applied earlier for mining leases, but the introduction of the e-auction system is expected to increase competition among companies and boost government revenue through royalties.

A pre-bid meeting for the e-auction is scheduled for September 24. In addition to the three blocks being auctioned now, the State government has decided to auction nine more mines, further increasing the scope of this initiative.

The Central Mines Department recently urged the State government to expedite the auction process for the 11 mines it had previously notified. These include five iron ore mines, five limestone blocks, and one manganese block. The upcoming e-auction is seen as a significant move towards enhancing transparency and efficiency in the mining sector in Telangana.