Paradip Iron Ore Plot E-auctions Results

As we have reported earlier, 25 companies aggressively participated in Paradip Plot E-auctions conducted on 04 Apr’16. The auction had been conducted for allotment of 10 manual plots(each plot comprising of 3,000 square meter)as well as 10 mechanical plots (each plot of 5,000 square meter) for a period of one year.

For manual plots, total 17 bids had been submitted, whereas for mechanical plot, total 08 bids had been submitted. Indian exporters and traders had been seen progressively participating in the plot auction. There is a ray of hope for Indian exporters as iron ore exports from India is likely to increase in the coming fiscal upon removal of export duty on low grade iron ore, increased global iron ore prices as well as reduction in freight charges, iron ore exports will strengthen in FY17.

For Manual Plots, Ujala Minerals quoted as the highest bid among all 17 companies. The company quoted highest bid prices of INR 63 per 3,000 square meter per month and considered as H1 bidder. So, accordingly the minimum annual rent to be paid by all the 17 companies would be around 22.6 lakhs per year.

List of bidders participated for Manual Plots

Bid price in INR for Manual plot each of 3,000 square meters/month
Source: SteelMint

On the similar lines, total 8 bids had been submitted for Mechanical Plots. Essel Mining & Industries Limited, turned out to be the H1 bidder and quoted at INR 17 per 5000 square meter of plot per month. The annual rent to be paid by all the bidders would come around INR 10.2 lakhs per year.

List of bidders participated for Mechanical Plots

Bid price in INR for Mechanical plot each of 5,000 square meters/month
Source: SteelMint