KARACHI: The Sindh Assembly was told on Friday that the auction for collection of royalty rights on minerals in different districts of the province was delayed as the parties interested in mining wanted the revision of reserved price for auction which was increased by 20 per cent.

While furnishing a statement and replying to lawmakers’ written and verbal queries during Question Hour, Mines and Mineral Development Minister Shabbir Ali Bijarani said that the auction for collection of royalty rights on certain minerals in districts of Karachi, excluding district Malir, Dadu, Jamshoro, Khairpur, Sukkur, Qambar-Shahdadkot and Thatta, were advertised and the same were published in leading newspapers on Aug 14 and 15, 2018 on approved reserved prices by Price Fixation Committee.

However, he said, initially no bids were received against the reserved price, except for Qambar, as the interested parties contended that the reserved price was high and submitted joint applications requesting that the reserved price for auctions for the year 2018-19 should be fixed the same as it was in 2017-18.

The minister, who was replying to a question asked by Grand Democratic Alliance’s member Arif Mustafa Jatoi, said that later auction for collection of royalty rights was held after formalities on the reserved price.

Giving details, Mr Bijarani said that the reserved bid price for auction for collection of royalty rights was Rs52.8 million in Karachi, Rs93.72m in Dadu/Jamshoro, Rs74.412m in Thatta, Rs43.68m in Khairpur, Rs68.1m in Sukkur and Rs1.22m in Qambar.

Responding to a supplementary question, he said that the price for auction was enhanced by 20pc.

Replying to another supplementary question, the minister said that there were eight cement factories in the province.

However, he added that his department was not concerned with the cement factories or their production. “The department only grants lease for raw material,” he added.

Responding to a question asked by Pakistan Peoples Party member Surendar Valasai, he said that the provincial mines and mineral development department had granted 81 mining concessions for lake salt in Thar. He said 33 leases for mining had expired.

Replying to a question raised by MPA Rana Ansar, the minister said that two out of eight crushing plants were in working condition.

He said that four of them were not in working condition, while two others had been removed.

He said that crushing of stone was a mineral dressing process and the mines and mineral development department was not competent to accord the permission for the crushing plant.

“The department grants only mining rights in shape of mining concessions without ownership title of land under Sindh Mining Concession Rules-2002,” he added.

In reply to another question asked by Munawwar Ali Wassan, the minister said that five out of total eight cement factories in the province were functional.

Published in Dawn, May 18th, 2019