Post News Network
Bhubaneswar, Feb 11: Non-coal mining auction process received a shot in the arm Thursday with seven metal firms bidding for Ghoraburahani-Sagasahi iron ore mine, which has been put on auction by the state government. The auction process, which is being undertaken as per the new Mines and Mineral (Development and Regulation) Act, has witnessed sound interest from firms due to large reserve of iron ore present in this block.
As per sources, seven firms which are in the race for the block include Bhushan Steel, Tata Steel, Essar Steel, Jindal Steel and Power Ltd, Rashtriya Ispat Nigam Ltd among others. They also said a technical committee will examine the eligibility of these bidders. Steel and Mines Secretary will preside over this committee meeting which is likely to be held coming Monday.
Ghoraburahani-Sagasahi East iron ore mines in Koira circle of Sundargarh district with a reserve of around 100 million tonne, is the only iron ore block for which the state government had issued notification in December 2015.
Meanwhile, no bidder has evinced interest in the bidding process for Garramura limestone block in Nuapada district with ore reserves of 2.79 million tonne for which the state government had issued notification January 6. The last date for purchase of tender document for this mineral block was February 5, 2016 and the last date for submission of the bid was February 10, 2016.
The state government is hopeful of completing the e-auction process for these mineral blocks by March end.
For e-auction of mineral blocks, the state government has appointed central PSU-MSTC to provide the electronic platform for the auction. It has also appointed SBI Capital Markets (SBICAP), a subsidiary of State Bank of India, as the transaction advisor.
Meanwhile, with only two minerals block being put to auction so far in the first phase in the state, the Centre has asked the state government to expedite the process of e-auctioning of mines in the first phase.
Union Mines Secretary, Balvinder Kumar had earlier pointed out that the state government had promised to enable auction of 12 mine blocks in the first phase of e-auction.
