PATNA: The Centre has handed over four blocks of potassium and chromium-nickel to Bihar government for auction under joint licence.
This was stated by Union minister of mines, coal and parliamentary affairs Prahalad Joshi in reply to a question by Rajya Sabha MP and state's former deputy chief minister Sushil Kumar Modi in the Parliament on Monday.
While three blocks of potassium (glauconitic) are located in Kaimur and Rohtas districts, the fourth block of chromite, nickel and platinum group of metals is located in Aurangabad and Gaya districts.
The minister said the National Mineral Exploration Trust (NMET) of the mines ministry would grant an incentive of Rs 20 lakh for the successful auction of each block. In case of unsuccessful auction, the trust would compensate the loss up to Rs 5 lakh each block, he said.
The auction of mineral blocks is likely to be carried out soon, sources said.
According to geoscientists, the state's contribution in the total value of mineral mining is expected to increase from three to five per cent with the commencement of mining, after auctions of the four mineral blocks.
Potassium mining will help in the expansion of fertilizer industries in Bihar. Similarly, a line of products for the steel industries can be developed based on chromium and nickel.
The chromium-nickel after its mining from Gaya and Aurangabad can be used in aviation and mobile manufacturing sectors.
