BHUBANESWAR: Ending the self-imposed embargo which lasted for almost two years, the Odisha government has resumed e-auction of its mineral blocks.
The directorate of mines and geology on Friday invited bids for e-auction of eight blocks in Sundargarh and Keonjhar districts for grant of lease for iron ore and manganese mines. The eight are among the 10 mineral blocks, mostly iron and manganese, which were recently approved by the Steel and Mines department for auction.
The mineral blocks lined up for auction include four iron ore, one manganese and three others a mix of manganese and iron ore. Four of them are virgin and the lease period of the rest four has expired since 2021. While three of the four virgin blocks are located in Sundargarh district, three expired blocks belong to Keonjhar district.
The blocks that would go under hammer are Koira iron ore (expired), Jhumka-Pathiriposhi West iron ore (virgin), Orahuri manganese and iron ore (virgin) and Bhanjikusum manganese (virgin) in Sundargarh district and Roida-I iron ore and manganese (expired), Putulipani iron ore (expired), Jalahuri iron ore and manganese (expired) and Roida-D manganese (virgin) in Keonjhar district.
The blocks have been put to auction with pre-embedded clearances to expedite operationalisation of the mines. As directed by the Centre, mineral-bearing states are bound to obtain statutory forest and environmental clearances before auction to avoid the delay in mining production.
As per the Ministry of Mines data, of the 457 mineral blocks auctioned in last one decade, 48 are located in Odisha. The state ranks third in mines auction after Madhya Pradesh (90) and Rajasthan (88). The highest 25 blocks were auctioned in 2019-20, 10 in 2022-23 and nine in 2021-22. Not a single block in the state had been put up for auction in the last two years owing to low metal prices.
Sources said, financial bids for the eight blocks have been invited in digital format only and the technical bids both in digital and physical format from eligible bidders. The price of tender document for each mineral block has been fixed at `5 lakh and applicable GST, which is payable under the reverse charge mechanism.
The last date for purchase of tender documents is April 16 and the bidders can submit their tender papers by 5 pm on April 25. Resumption in auction of mineral blocks assumes significance as 75 per cent of Odisha’s non-tax revenue comes from the mining sector.