In order to bring about transparency and increase state revenue from allocation of mining leases, Justice MB Shah Commission recommended that such leases be granted through public auction. After holding several hearings and inspections in Goa, the commission said natural resources, mostly iron ore, had made a few leaseholders billionaires.
It is necessary that leasehold rights for mining are granted by public auction. This would increase the income of the state and there would be transparency in grant of lease and reduction in corruption or favouritism.
The Mines Ministry, in its Action Taken Report submitted in Parliament, said the issue of public auction had been included in the Mines and Minerals (Development and Regulation) Bill, 2011 which had been referred to a parliamentary panel. The report said complaints of pollution of natural streams, rivers, ponds, destruction of agriculture and failure of horticulture crops were well-known to the entire State administration.