Jaipur: The state mining department has cancelled the auction of Rajasthan’s first gold mine located in Bhukia-Jagpura, Banswara district, after detecting irregularities in the documentation submitted by the winning firm, sources said Wednesday. The decision to annul the auction, which occurred in May, has come to light only recently, as the department officials maintained silence on the matter. In June 2024, Rajasthan became the fourth state—after Karnataka, Andhra Pradesh and Jharkhand—to secure a gold mining license. The auction saw participation from four bidders: Hirakund Natural Resources Ltd, Hindustan Zinc, Ramgarh Minerals & Mining Ltd and Owais Metal & Mineral Processing Ltd. The license was granted to Ratlam-based businessman Syed Owais Ali’s firm, Owais Metal & Mineral Processing Ltd. It has now been revoked following investigations revealing discrepancies in the net worth and income tax returns submitted by his company, sources said. The cancellation order was issued by the mining department’s joint secretary, Ashu Chaudhary, who confirmed that preparations for a new round of bidding are already underway. The re-auction is anticipated to take place this year, with completion expected by Nov or Dec. TOI tried to contact Owais Metal & Mineral for a statement but the firm could not be reached Wednesday.A senior official disclosed that the bid was initially supported by a net worth certificate from the firm, but upon scrutiny, inconsistencies were found between PAN card and income tax returns of Ali and the company’s records. The official said, “The mining department received complaints and conducted a detailed examination. The firm’s net worth failed to meet the eligibility criteria. Moreover, a mandatory compliance requirement of Rs 200 crore was not fulfilled and discrepancies in shareholding were evident in the chartered accountant’s certificate. On these grounds, the department cancelled the tender.” Despite the cancellation, the company had allegedly begun the process of obtaining environmental clearance and was in the midst of setting up machinery at the mine site. Originally, it was projected that production at the Banswara mine would commence by 2026-27, but this timeline now appears likely to be extended. The mine is estimated to contain 113.52 million tonnes of gold ore and is crucial for the state’s revenue, with projections suggesting it could generate Rs 1 lakh crore over the next 50 years. Furthermore, the region is believed to hold significant deposits of copper, nickel and cobalt. The project is expected to create employment opportunities for approximately 50,000 individuals, both directly and indirectly, while drawing major industrial investments. Additionally, the co-minerals extracted from the mine are anticipated to foster significant revenue and job opportunities in industries such as aerospace, electronics and jewellery.
