Odisha will publish a notice inviting tender (NIT) today for the auction of 10 iron ore and manganese blocks and one bauxite deposit. It has reserved four limestone and a graphite block for the second phase.
Bids are made on the basis of a ‘premium,’ in the percentage of the average sale price of iron ore published by IBM, that the company is willing to pay the state. This is in addition to royalty and other mining-related taxes.
Base price for iron ore blocks of up to 10mt(million tonnes) in resource has been set at 15 %, at 25 % for deposits between 10 and 100 mn t, 35% for 100- 500 mt and 50 % for blocks with more than 500 mnt of iron ore. The barrier for the graphite and limestone blocks, which the state hasn’t been as successful in auctioning in the past, is set lower at 5%. Bids for the first and sole bauxite deposit being auctioned will start at 35%.
Tender documents for iron ore and bauxite will cost INR 5 lakh each and graphite and limestone, INR 2 lakh each. These will be available for sale till 19 August 2021.
The state will carry out training and mock-auction for all bidders on an e-auction platform between 31 August to 7 September. The auctions themselves will take place between 18 September and 29 September. The preferred bidder has 15 days to deposit 20% of the upfront payment and will be granted a vesting order within 15 days of doing so.
Sociedade de Fomento, Vishal LPG and Tarama Apartments, the highest bidders for the Nadidih (formerly mined by Bico), Nadidih (Fegerade) and Teherai mines respectively, are barred from participating in the auctions of those specific deposits.
Note:
1) The timeline shown above is based on calendar days.
2) Due dates will be updated if any holidays are announced by the government in the intervening period.
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