The Geological Survey of India has denied that it has found gold deposit estimated to be around 3,000 tonnes in Uttar Pradesh' Sonbhadra district.
We are not a party to the information published in the news. GSI has not estimated such kind of vast resource of gold deposits in Sonbhadra district, UP, GSI informed PTI.
Earlier in the day, it was reported in the media that the Geological Survey of India and the Uttar Pradesh Directorate of Geology and Mining have discovered a huge swath of gold deposit in the hinterland of Sonbhadra district in Uttar Pradesh.
The ANI had quoted a district minning official for the previous information about the discovery.
India's gold reserve is around 626 tonnes.
According to the World Gold Council (WGC), India is currently at the 10th spot in the list of nations with the highest gold reserve.
The state government of Uttar Pradesh is acting swiftly and has formed a seven-member team to start the process of auctioning the mines after due process.
Here is a look at how the auction process of the mines is held in the state of Uttar Pradesh, and what the discovery of government goldmines means for Sonbhadra.
E-tendering process
The Uttar Pradesh government introduced an e-tendering system for all leases on mining projects in 2012.
Under this process, the bidder first has to register and submit bidding documents to the government. The officials then would evaluate bids and the bidder who quotes the highest royalty is allotted the area under one year contract.
The leaseholders then need to obtain environmental clearance for mining if the area excess five hectares.
The competitive bids go a long way in boosting the state revenue collection.
Sonbhadra
Sonbhadra is one of 75 districts of Uttar Pradesh and also one the backward districts in the country. It lies in the southern part of the state and shares border with Bihar, Jharkhand, Madhya Pradesh, and Chhattisgarh.
Sonbhadra is also called as the "Energy Capital of India" because of many power plants and aluminium plants in the district. Yet, the district is lagging in terms of development.
In spite of so many electrical power stations in the regions, Sonbhadra receives fund from the Backward Regions Grant Fund Programme (BRGF).
It also has UP's highest tribal populations.
However, with the discovery of huge gold reserve and soon-to-be auctioned goldmines in Sonbhadra, the region could see a boost in job opportunities and development. As the process of auctioning has begun, the mining of gold will need a large of people to carry out skilled and no-skilled tasks leading to a rise in jobs and growth of the region.
The exploration of the goldmines and other minerals will, possibly, provide a major impetus to the revenue of the country's most populous state of Uttar Pradesh.
Note: This article has been corrected to reflect the accurate information about the gold reserve found in Sonbhadra district of UP.
