COVID-19 forces Odisha to further delay Auctioning of 9 Virgin Mining Blocks

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By Anurjay Dhal

RAJKANIKA/KENDRAPARA: With Nationwide lockdown continues and Odisha Government putting all its machineries to fight back the spread of outbreak of COVID-19, the fate of as many as 9 Virgin mining blocks, which was slated to be auctioned in February this year, again hit a stumbling block with State Steel and Mines Department stops functioning in view of the dreaded disease.

The 9 Blocks included 7 Iron Ore, 1 exclusive Manganese,and 1 block with co-existence of Iron Ore and Manganese. The 7 Iron Ore Blocks listed are Purheibahal, Chandiposhi, Rengalaberha North East, Gandhalpada, Netrabandha Pahar (West), Dholtapahar and Jhumka Pathriposhi. Unchabali has mixed Iron Ore and Manganese reserves while Kalimati is the sole Manganese block, official sources said.

“The Naveen Patnaik led BJD Government had earlier targeted to auction as many as 9 Virgin mining blocks soon after completing the paper works of auctioned mines, those are expiring by March 31, but since lockdown continues, it will delayed for sometime from now,” sources said on Sunday.

State Steel and Mines Department officials however informed that these blocks will be offered for electronic auctions. “We were working on it and auction processes were about start but got delayed since the State and Union imposed lockdown,” said an official of State Steel and Mines Department.

“We hope, we will start soon,” Deepak Mohanty, Odisha Director of Mines added.“Since lockdown continues, we were not able to issue Notice Inviting Tenders (NITs) for 9 Virgin Mining Blocks,” informed official sources.

Sources said, several Big Merchant miners are eyeing for Virgin blocks after they lost their running mines in the just concluded bidding for mining blocks under Joda,Koira, Rairangpur and Sukinda mining circles of State’s mineral bearing districts of Keonjhar, Sundargarh, Mayurbhanj and Jajpur, those are expiring by March 31.

Sources closely monitoring the development said that Jharkhand’s Chaibasa headquarters Rungta Mines Ltd Group, which lost half dozen of its running mines under Joda-Koira region, is alone eyeing on more than 5 to 6 blocks. After losing its running blocks, RML Group till has 2 major blocks, which has life of more than 15 years. Most of the mines deposits of Rungta Mines Ltd are at final stage and the Merchant miner is all set play its card during auction of Virgin blocks.

Apart from RML Group, Jindal Steel and Power Ltd, Essel Mining and Industries Ltd, a subsidiary of Aditya Birla Group, which dragged the Kolkata, based Shyam Ore Pvt Ltd to Supreme Court over the lease transfer of Jilling-Langalota Block also eyeing on several virgin blocks. Serajuddin &Co and others also eyeing on these virgin blocks.

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