India, Oct. 16 -- In Wednesday's column, we looked at the general problems with auctions in mining. Today, we consider how the environment, although crucial and critical, creates impediments in post-auction scenarios. Thanks to Supreme Court precedents, which were necessary given the extent of illegal mining in the country, and many miners paying lip-service to environment and humanitarian concerns, Environment Impact Assessment (EIA) studies became mandatory before mining activities could commence. But EIAs, or the lack of them due to delays and denials by the relevant authorities and stakeholders, have derailed mining, and reduced the efficacy of auctions.

Here are a few facts and figures. Of the 190-odd non-coal mineral blocks that we...