India: Odisha to schedule next round of mine block auctions soon

• Auction timeline uncertain amid potential policy changes
• State had planned to auction 22 other deposits by FY’26

Odisha has prepared a list of 12 new blocks for auction, including four iron ore, two manganese and iron ore, and two bauxite deposits. However, when these will be auctioned remains uncertain, raising doubts on whether the state will meets its auction targets.

The list supposedly cleared by the state’s High-Level Committee is as below.

Odisha, which was the first to start on the auction route and has been commended by the Centre more than once on the successful implementation of the amended 2015 MMDR Act, slowed its pipeline of iron ore deposits after the initial years.

After a long gap of one and half year, a new set of mineral deposits (of 8 blocks including 4 iron ore blocks) had been auctioned between March-June 2025.

The state government’s own target was to auction 22 other deposits before the end of FY’26. However, some industry experts suggest that there could be possible amendments to auction rules, discussed in an inter-ministerial meeting led by Piyush Goyal. According to some who attended, among the issues discussed was unrealistically high premiums.

Others suggest that the state may be intentionally delaying auctions to avoid oversupply of iron ore, whose prices impact OMC’s and the state’s earnings substantially.

According to data published by the Ministry of Mines, around 130 iron ore (including combined iron ore, manganese, and dolomite deposits) blocks have been auctioned since 2015 across different states, mainly Odisha, Karnataka, and Chhattisgarh (3 states producing around 87% of India’s iron ore).

Odisha mine block auctions conducted so far have fetched premiums of 111%. Meanwhile, iron ore deposits in Karnataka have fetched a premium of 87%, and auctions conducted so far by Chhattisgarh have fetched a premium of 113%.

An industry watcher, requesting anonymity, said Odisha has no dearth of iron ore deposits. Additionally, several unexplored areas have also been explored by government agencies and are expected to be auctioned in due course. “Holding back these areas may not fetch higher premiums, if that’s the idea,” the person said.