The central government is planning to set up special purpose vehicles (SPVs) to ensure necessary project clearances, including environmental, for the mineral blocks before bidding.
With this move, the mines ministry hopes to add pace to the auction process. It is to be noted that a whopping number of 60 auction attempts have failed in two years from January 2015 to March 2017.
“We are mulling setting up SPVs for seeking clearances such as environment and forest before auctioning the mineral blocks,” said an ET report, quoting a mines ministry official privy to the development.
Currently, the report said there are significant delays in seeking forest and environment clearances and as a result a lot of companies are not keen to participate in the auction of mineral blocks. “That’s why we are thinking to set up special purpose vehicles”, added the official.
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