Bhubaneswar: The Odisha government has begun the auction process for 11 virgin mineral blocks rich in bauxite, iron ore, manganese, limestone, dolomite, and aluminous laterite, to boost the state’s mining output and support the expansion plans of steel, aluminium and cement industries.
These blocks are spread across five key mineral-rich districts: Kalahandi, Rayagada, Sundargarh, Keonjhar, and Bargarh.
The Directorate of Mines and Geology has invited bids for eight mining leases (ML) and three composite licences (CL), primarily targeting bauxite. Notable among them are Karlapat bauxite block in Kalahandi and the Nunapaimali bauxite block in Rayagada, which are anticipated to attract strong interest from major aluminium producers seeking secure, long-term raw material supplies.
Under the composite licence category, three unexplored bauxite blocks in Rayagada, Tikirimali-Budharajamali, Tikriguda-Maliguda, and NangalMarhimali, will require successful bidders to first conduct detailed exploration before advancing to mining rights.
Karlapat Block Draws Scrutiny
Industry observers and environmental groups are closely watching the Karlapat bauxite block, which holds an estimated 220 million tonnes of reserves over more than 3,100 hectares. The deposit lies in proximity to the ecologically sensitive Karlapat Wildlife Sanctuary, a designated elephant corridor.
The block has a contentious history. In 2021, the Odisha High Court halted a previous auction attempt following petitions highlighting risks to forests, wildlife habitats, and water sources. Reports indicate recent boundary rationalisation of the sanctuary, which has raised fresh concerns among activists about potential impacts on biodiversity and local water streams.
Other blocks include:
Gadadharpur iron ore block (Keonjhar)
Patamunda-B and Barpada South iron ore and manganese blocks (Sundargarh)
Jaldihi-Tantigram iron ore and aluminous laterite block (Sundargarh)
Kendudihi-Parulipada manganese and dolomite block (Keonjhar)
Behera-Banjipali limestone block (Bargarh), the sole non-metallic mineral asset under ML.
Auction Timeline and Process
All blocks will be auctioned electronically. Tender documents become available from June 1, with the last date for purchase set for July 6. Financial and technical bids have to be submitted July 13.
While the state government had readied 30 mineral blocks for auction in FY 2025-26, eight have already been auctioned and bids received for 11 out of 12 virgin mineral blocks invited in December last year. As many as 34 mineral blocks, comprising 25 major mineral blocks and nine critical and strategic mineral assets, have been lined up for auction in FY 2026-27. The latest round of mineral auctions comes as several steel and aluminium companies are actively expanding their capacities in Odisha, driven by rising domestic demand and India’s ambitious push to establish itself as a global manufacturing powerhouse. The upcoming auction round, for the first time, includes three gold-bearing blocks.
