Odisha rejects steel federation demand for separate e-auction

The
Odisha government has turned down the demand of local steel industries to
conduct separate e-auction of minerals. The Steel and mines department has made
it clear that the entire quantity of minerals would be e-auctioned after
setting aside the quantity meant for captive consumption and export commitment
by the miners.

“We
cannot conduct separate e-auctions for inside and outside state parties. Also
there is no question of letting lower base price for local industries. MSTC
will conduct the e-auction process on behalf of the state government, for which
the relevant terms and conditions will be finalised within 2-3 days and after
the finalisation of terms and conditions our department will sign an MoU with MSTC”said
state Director of mines Mr.Depak Mohanty after the meeting with MSTC officials
on e-auction.

It
has been learned that the department has amended some key terms and conditions
in the draft guideline proposed by MSTC.

The All Odisha Steel Federation (AOSF) representing more than 200
steel, sponge iron and allied industries in the state has demanded separate
e-auction for state based end user units and outside state units. In its
memorandum to the steel and mines department the federation has also demanded
for reasonable base price of iron ore in the e-auction.

On the other hand MSTC has made it clear that there will be no
question of cartelisation as the entire system is very transparent and foolproof.
“The E-Auction process will involve registration of buyers and sellers and
there is no question of cartelisation as the entire system is very much
transparaent” said Mr.S.K.Tripathy,CMD of 
MSTC.

The e-auction of minerals like iron ore is expected to start from
1^st of April this year.

Reported by Tapan Moharana