Odisha govt. has recently issued a notification for the dispatch of already excavated minerals by the old Lessees. The govt. has permitted the old lease holder’s to remove all the material extracted before lease expiry within a period of six months starting form 31st Mar’20.
As per the notification, “The lessee may, after paying the rents, rates and royalties payable at the expiry or sooner termination of the lease term or within six calendar months thereafter take down and remove for its own benefit, all or any ore mineral excavated during the currency of the lease, engines, machinery, plant, buildings structures, tramways, railways and other works, erections and conveniences which may have been erected, set up or placed by the lessee in or upon the leased lands.”
In line with MMDR (Amendment) Act 2015, Odisha govt. put up few key major iron ore mines for auction which were due to expire in March 2020. However, the auction process of Badampahar has been put on hold due to some ongoing legal issues. The leases put up for auction are expected to have produced around 65-70 MnT iron ore in FY’20 versus 50-55 MnT in FY19, against an EC limit of 80-85 MnT.
Few of the key mining leases auctioned include Rungta Jajang mines, KJS Ahluwalia, Kaypee Enterprises, Serajuddin Mines, KN Ram, RP Sao, etc. Prominent bidders were JSW Steel, AM/NS, JSPL, etc.
Odisha is India’s largest iron ore producing state and accounting for 50% share of India’s production and therefore auction of these mines is a matter of concern for the Indian steel industry.
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