The Centre had recently decided to put eight more mines on e-auction in Karnataka.
Out of these eight, fives mines have been qualified for e-auction. According to the protocol, each mine is required to receive at least three applications from bidders to qualify for the process of auction.
Two mines were auctioned on Tuesday and the rest will be done in the coming days. Based on R&R, the total capacity of these mines is around 5.73 MTPA.
Industry sources said that the State exchequer will get around 30 per cent per tonne in terms of SPV, Royalty, DMF (District Mineral fund) and NMET (National Mineral Exploration Trust). The State exchequer was Rs. 760 PMT for e-auction held till July FY19.
State exchequer's total revenue from these mines would depend on yearly their production, industry sources said.
On what are its other benefits to the mining and consumers industry in Karnataka, they said, increased availability would make state self-dependent, increased capacity means availability of raw material at competitive price.