Odisha Govt Approves Auction Of 10 Mineral Blocks After A Long Wait

Bhubaneswar: The Odisha government has approved a proposal of the Steel and Mines department for auction of ten mineral blocks, mostly iron and manganese ore.

The nod came after a long wait for over two years as the government apparently adopted a cautious approach eyeing a bullish metal market. Finally, a push from the Centre appeared to have promoted it to move ahead.

Sources said the government has approved auction of four iron ore mines – Koira in Sundargarh district, and Roida-1, Putulipani and Jalahuri in Keonjhar district, whose lease period have expired since 2021. Jhumka-Pathiriposhi West iron ore block in Sundargarh is a virgin mine put up for auction.

Three blocks with a mix of deposit of iron ore and manganese located at Orahuri, Bhanjikususm in Sundargarh, and Roida-D in Keonjhar district are in the auction list.

The government has also given permission for auction of two virgin bauxite blocks at Karlapat in Kalahandi district and Nunapaimali in Rayagada district, TNIE reported.

While the BJP formed government seven months ago, it was reluctant to go ahead with e-auction of mines fearing lack of response from bidders due to the current low metal prices.

“The decision to go for auction of 10 mineral blocks including two virgin bauxite mines in a not so conducive market situation is most possibly driven by pressure from the Union Mines minister G Kishan Reddy, who during his recent visit took up the issue with Chief Minister Mohan Charan Majhi,” the report quoted sources in the mining industry as saying.

Most of the mineral-bearing states are reluctant to go for auction fearing abnormally low bids which could lead to long-term revenue loss. The state government sets floor prices for auction based on its perception of the fair value of the mine. The bidders’ perception of the fair value of the mine could be lower than the government, they said.

The mining sector contributed immensely to the state’s economy after the auction regime come into play following major amendments in the Mines and Minerals (Development and Regulation) Act, 2015.