Odisha’s steel & mines department is mulling to resume its stalled auctions process, offering eight blocks for the bidders. The blocks endowed with deposits of chromite, limestone, dolomite and graphite are a mixture of virgin blocks as well as the ones currently under the leasehold of merchant miners.
Auctions of mineral blocks in Odisha, a repository of minerals, are restarting after a hiatus of more than a year. Not a single mineral block in the state could be put to online auctions in FY 2019 as the case pertaining to maximum lease hold area for a miner was entangled in litigations.
According to government documents, two chromite blocks held by B C Mohanty (Kamarda chromite mines) and Misrilall Mines (Saruabil chromite mines) in Jajpur district will be put to auctions. The rest six- Behera Bhanjipalli limestone in Bargarh district, Garramurrah limestone block in Nuapada district, Khatkurbahal limestone/dolomite mine in Sundargarh district, Pipalmunda limestone block in Bolangir district, Naringpanga graphite block in Rayagada district and Jagdalpur graphite block also in Rayagada district, are freehold blocks. All are scheduled to be auctioned tentatively in the first week of August. All the eight blocks are likely to be offered for merchant miners. The eight blocks between them possess 144.58 million tonne reserves with the estimated resources valued at Rs 21,773.21 crore.
It may be noted that after drawing a blank in last fiscal, Odisha has geared up to auction 40 mineral blocks in FY 2020- 16 merchant mines and 24 untapped, virgin deposits.
SBI Caps, the consultant for organising auctions in Odisha, recently made a presentation on including provisions for disallowing participation of bidders as per the latest letter by the Union mines ministry, incorporating provisions relating to partnership and proprietorship, treatment regarding minor minerals already discovered at the time of auctions, end use reservations of iron ore blocks and conditions thereof and blocks taken up for auctions in the previous phase.
SBI Caps has also submitted a note title ‘Decision & Way Forward’ outlining the decisions to be taken by the Odisha government. The cost of Tender Document for each of the eight blocks is prepared basing on the value of Estimated Resources as suggested by the Transaction Advisor (SBI Caps). As per the note submitted by the transaction advisor, the reserve price for each of the mineral blocks queued up for auctions have been suggested at five per cent.
On scheduling of iron ore and manganese block auctions, the high level committee chaired by the additional chief secretary (steel & mines) will take a call shortly.
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