BHUBANESWAR: Clearing the decks for auction of iron ore blocks, which was held up due to restriction imposed by the Delhi High Court, a high-level committee of the Ministry of Mines on Thursday recommended relaxation of area limit for grant of mining lease to 58 square kilometer for Odisha.
“The high-level committee of the Mines Ministry has recommended to increase mining area limit for auction of iron ore blocks upto 58 sq km for Odisha, 75 sq km for Jharkhand and 50 sq km for Chhattisgarh,” sources familiar with the development told the TNIE.
A notification on relaxation of area limit for different minerals under Section 6 (1) and (b) for the three states is expected within a day or two, the sources added.The State Government is all set to issue notice inviting tender (NIT) for auction of 28 iron ore mines, including eight virgin (free hold) mines, by September end.
The State has been deferring online auction of iron ore blocks due to delay in clearance of its proposal for relaxation of mining area limit. In its August 30 missive, the Ministry of Mines has asked the State not to allow bidders with over 10 sq km or more area in their leasehold, at electronic auction.
“Disallow participation of persons who are holding or may, in the event of becoming highest bidders in the auction, hold the area in excess of the limit under Section 6 (1) of the MMDR Act,” said Director in the Mines Ministry Veena Kumari Dermal in a letter to the State Government.
Making it abundantly clear that the Centre is empowered to relax the area beyond the prescribed limit for grant of prospecting or mining lease, Dermal said the State may issue NIT for auction of mineral blocks only after a decision on the relaxation of area limit is conveyed.
The problem started when the e-auction process of two iron ore blocks - Chandiposhi and Purheibahal in Sundargarh district was challenged and the Delhi High Court restrained the State Government from proceeding with the auction as this violates the clauses under Section 6 (1) (b) of the Mines and Minerals- Development & Regulation Act of 1957.
The State then requested the Centre to raise the permissible limit from 10 sq km to 75 sq km purportedly to facilitate Tata Steel and State-run SAIL’s participation in the auctions. While SAIL has over mining lease hold area of over 55 sq km, Tata Steel has 49 sq km area under its possession.
The State Government which had auctioned five mineral blocks, including three iron ore ones by May 2017 had put seven mineral blocks, including two chromite blocks, for e-auction in July.
Under the hammer
On August 30, the Ministry of Mines had asked Odisha not to allow bidders with over 10 sq km or more area in their leasehold, at electronic auction
Odisha has been deferring online auction due to delay in clearance of its proposal for relaxation of mining area limit