Bhubaneswar: More than a year after the last auction on mineral blocks, the state government on Wednesday published a notification that invited tender (NIT) for online auctions as many as 11 mineral blocks in the state.
Mineral blocks for contested including seven iron ore blocks (BICO), Purheibahal, Chandiposhi, Jumka Pathiriposhi Pahah, Dholtapahar, Netrabandha Pahar (West) and Gandhalada, two blocks of composite iron ore and manganese (feeegrade) and teheri , one block of iron ore composite and dolomite-kasia and one bauxite block.
While Kasia, Nadidih (Bico), Nadidih (FeeGrade) and Tehran are expired blocks, whose lease period ends on March 31, 2020, the remaining seven mines are virgin blocks.
This is for the first time since the beginning of the mining auction process, the bauxite block will be auctioned.
While the last auction from the mineral block was carried out in January and February 2020, there was no block that had been auctioned since then considering the new Covid-19 auction rules and waiting.
“Now, the auction process is being carried out according to the recently issued auction rules by the Mines Union mines which aims to speed up the auction process.
Because one of the main changes in the new auction rule is that there are no blocks reserved for the use of captives, we have been Including that in the auction process, “said a senior officer of the Steel Department and the State Mine, who asked for anonymity.
Asked about the possibility of financial benefits for the state of this 11 block auction, the official said it would only be known after the advanced auction process (financial offer process).
According to the notification, the last date for the purchase of tender documents and submission of offers on August 19 and August 24.
The official source said the state government had planned to complete the auction process at the end of September.
Sources in the State Steel Department and Mines said they would auction more blocks in the next few months.
While the notification is issued for auction 11 blocks in the first phase, as many as four limestone blocks and graphite blocks will be auctioned in the second phase, the agreement that has been taken from the state government.
The mining sector contributes significantly to the state conditions with the state government has obtained more than Rs 9,100 Crore in the first quarter (April-June) from the financial year 2021-22 at this time.