Bhubaneswar: While the government of India is trying to convince mineral rich state governments like Odisha to expedite the process of auction of iron ore mines, the states are in no hurry to execute the process soon, thanks to the cold international steel and iron ore market. The states fear, auctioning or mineral blocks at this juncture of time will not fetch the desired amount.
On Monday, the Union Government has once again urged Odisha Government to expedite the process of auctioning of the iron ore mines. Sources in know of the development said the Union Mines Secretary Balwinder Kumar who called on Chief Minister Naveen Patnaik and State Chief Secretary GC Pati in Bhubaneswar underscored the need for such auctioning without further delay.
While Union Coal Ministry has succeeded in auctioning coal blocks across the country and generated a whopping Rs 2 lakh crores of revenue, Balwinder Kumar is understood to have underscored the acceleration process of the iron ore auction in Odisha. Centre is prepared to extend all possible assistance to the State Government in expediting the iron ore process, Mr.Kumar assured the Chief Minister. Ministry of Mines is also going to bear the cost of engaging SBI Capital as the Transaction Advisor for carrying out auction of iron ore mines in the State, Mr.Kumar added. However, sources in State Government feel as the price of Iron ore in international market has gone down substantially, auctioning at this stage would not be prudent for Odisha as it would fetch much less revenue to the State due to low bidding.
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