Nine mineral blocks in Odisha to go under hammer next month

Under the new Central guidelines issued by the Ministry of Mines, the Government will obtain all statutory clearances before putting these new blocks under hammer.
Picture for representational purpose (File Photo |EPS)
Picture for representational purpose (File Photo |EPS)

BHUBANESWAR: The Odisha government has initiated the process for issue of notice for tender (NIT) of nine greenfield mineral blocks for auction in July this year. The freehold blocks lined up for auctions are Pureibahal, Chandiposhi, Jhumka-Pathiriposi, Dholtapahad, Unchabali, Gandhalpada, Rengalbeda North-East, Netrabandha Pahar (West) and Kalimati.

While Kalimati is a manganese block and Unchabali is a mix of iron ore and manganese, the rest blocks are iron ore. However, under the new Central guidelines issued by the Ministry of Mines, the Government will obtain all statutory clearances before putting these new blocks under hammer.

The Centre has asked mineral bearing states to identify at least five new mining projects for auction with pre-embedded clearance on a pilot basis with a view to expediting the sale process as well as operationalisation of the blocks.

“The Ministry of Mines has released guidelines for the auction of mineral blocks with pre-embedded clearances that will help overcome delay in operationalisation of mines into production after auction,” said Director of Mines Deepak Mohanty.

As per the new guidelines, the Government will set up a project monitoring unit (PMU) to complete the preparatory work for obtaining requisite clearances, approvals and related work. The PMU will obtain all the clearances for starting a mining project, he added.

Since mining plan is the basic document to start mining operation on which hinges the environmental clearance (EC) and forest clearance (FC), the PMU is mandated to get the plan prepared by engaging a qualified person. The mining plan will be approved by the Indian Bureau of Mines (IBM) within a period of 15 days.

This will allow successful bidder the flexibility to either enhance or reduce the production limit by 25 per cent.The forest clearance (FC) has two stages. The PMU will complete the process and obtain the FC stage-I clearance as no financial commitment is required or levy to be paid.

Successful bidders will make all payments on accounts of net present value (NPV), compensatory afforestation and other related levies and charges during the FC stage-II clearance.

Since obtaining land rights for mining is another time consuming process, the Ministry said PMU should get the land rights for mining in case of both Government as well as privately-owned land.

The Government will also apply and obtain all other clearances which are required for the lessee to start the mining operations.

Guidelines for auction

  • The Government will obtain all statutory clearances before putting these new blocks under hammer

  • It will set up a project monitoring unit to complete the preparatory work for obtaining requisite clearances, approvals

  • The mining plan will be approved by the Indian Bureau of Mines (IBM) within 15 days

  • The PMU will complete the process and obtain the forest clearance stage-I clearance

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