The government has decided to put on hold allocation of mineral mines, other than coal, in view of the Mines and Minerals Bill pending before Parliament. The Prime Minister's Office sent a directive in this regard to the Mines Ministry about two months back.

The Ministry was advised that since the Mines and Minerals (Regulation and Development) Bill has not been passed by Parliament yet, the issue of allocation of mines needed to be examined legally before any step could be taken in this direction. The Bill, being examined by Parliamentary Standing Committee has provisions for a transparent mechanism for granting mining lease through the competitive bidding process.

Allocation of certain coal blocks without auction has come in for criticism with CAG contending that it had caused loss to the tune of 1.86 lakh crore rupees.