BHUBANESWAR : The Cabinet on Saturday approved a proposal of the State government to allow Odisha Mining Corporation (OMC) to sell the entire quantity of bauxite ore meant for sale through national e-auction for 2020-21 at the rate of Rs 1,000 per tonne.
As per decision, the bauxite purchasers will have to submit undertaking to pay the differential rate as stipulated by the Orissa High Court in its order on November 8, 2010. This process will be a one-time measure limited only to 2020-21 financial year.
The government had in February, 2018 amended the Long Term Linkage (LTL) policy for supply of bauxite ore by the OMC to the end users in the State. However, in 2019, the Centre amended the conversion factor for calculating average sale price (ASP) of metallurgical grade bauxite.
The decision has been challenged before the High Court by LTL holder Vedanta Ltd. Besides, no bidder participated in e-auction conducted by the OMC on August 31, 2020 as per the new revised floor price based on amendment of ASP by the Centre. Official sources said the decision will prevent loss of revenue to OMC.