The Paradip Port Trust had invited bids for allotment of 7 mechanical iron ore/iron ore pellets plots through the online bidding platform. The last date of submission of bid was 6th Dec’17 at 16:00 Hrs and the technical bids were to be opened on 7th Dec’17 at 16:00 Hrs.
The reserve price for the plot was fixed at Rs.1,267 per square meter per month. The plots will be allotted for a period of 11 months. All the 7 nos. mechanical iron ore plots put to tender have been standardized to area of 5,000 square meter located at IOHP area.
According to market sources report to SteelMint, the 4 companies that have qualified the technical bid in the plot auction are – Bagadiya Brothers, Kashvi Steel & Power, JSPL and Nalwa Steel. Following this, the price bid of the successful bidders will be opened online.
The wharfage charges amount is Rs. 50,63,793 for the minimum guaranteed traffic (MGT) of 1,83,000 MT for 11 months (including 18% GST).
The last e-auction which conducted on 16 Jan’17 for 7 mechanical plots (each plot of 5,000 square meters) had base price set at INR 62 per square meter. However, according to sources, the bids received were above INR 1,000 per square meter of plot per month.
Indian pellet exports increased significantly this fiscal – According to customs data maintained with SteelMint, Indian pellet exports were recorded at 6.09 MnT during Apr-Nov’17 compared to 4.67 MnT in the same time frame last fiscal. JSPL has by far remained the largest pellet exporter in FY18.
Indian exporters are eyeing for lowering in export duty on medium grade iron ore so . In case government cuts or scraps iron ore export duty, it may boost exports from the country.
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