As per letter issued by Director of Mines, Odisha to Deputy Director of Mines, Koira and Baripada and Mining Officer, Baripada, the government shall re-allocate lron ore from different mines to the stand alone lron & Steel Industry as per the enclosed statement along with the price for necessary procurement by the companies.
The allotted quantities are to be positively lifted by this quarter ending on 31 Mar, 2015. The undersigned must also be intimated regarding the requirement of lron ore to be procured from OMC through the long-term linkages.
The lifting of lron ore by the stand alone companies will be according to procedure outlined by the DMO as mentioned below:
1. The DDM/MO of the respective circle shall intimate the allocated amount to the concerned lessee and the allottee company forthwith.
2. The allottee companies should submit an undertaking with the respective DDMs/MOs of the concerned circles indicating their acceptance of allocation within 10 days of intimation receipt from the DDM/MO concerned failing which the allocation made will be cancelled and the matter will be dealt, as per the provisions of para 14 of Government Notification No.8422/SM dated 26 Jun, 2014. The copies of the said undertaking and cancellation orders, if any should be sent to the undersigned immediately.
3. Each allottee shall submit an unconditional and irrevocable bank guarantee in favour of Director of Mines for a sum equivalent to 10% of the pecuniary value of the mineral allotted as per format enclosed herewith. This bank guarantee should be submitted with the Director of Mines within 10 days of intimation receipt, which will be duly received by the Director of Mines or any officer authorized in this behalf on the same day. A copy of the receipt of bank guarantee shall be submitted by the allottee to the concerned DDM/MO, failing which the allottee company shall not be permitted by the DDM/MO to lift the allotted quantity of Iron ore.
4. In the event of non-acceptance of the allotment or non-submission of bank guarantee within the specified time frame as stated above, the allotment will be treated as automatically cancelled and the DDMs/MOs will allow the concerned lessee(s) to sell the allotted quantity to other buyers, both inside and outside the state.
5. The quantity allotted in this scheme and accepted by the allottee shall not be refused to the allottee company under any pretext by the concerned lessee. In case, any lessee refuses to honour the allotment, the concerned DDM/MO may withhold further permission for removal of ore in respect of the mine and bring it to the Director of Mines with a factual report thereon. Ore removal permission may be restored from the concerned mine only after receipt of instruction for the same from the Director of Mines.
6. Quantity of Iron ore to be lifted under this scheme shall be sampled, analysed in the government laboratory and weighed at the delivery point of the mine and certified by the jurisdictional DDM/MO.
7. In case, any amount of mineral has been lifted by any state-based industry as per allocation communicated vide this Directorate letter No. 10827/DM dated 12 Dec’14, the said quantity shall be taken into account while permitting further quantities of Iron ore to the company. Such permission shall be subject to all other conditions prescribed herein.
8. The lessee shall be free to dispose of or otherwise deal with Iron ore that are not subjected to preemption as prescribed under para 13 of Government Notification No.8422/’SM dated 26 Jun, 2014. Concerned DDM/MO shall take appropriate action in this regard.
Prior to this, the Iron & Steel industry wasn’t happy with the prices in the last e-auction and had asked the government to review the allotment.
Link to letter issued by Director of Mines,Odisha
Link to letter issued by Deputy Director of Mines, Koira
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