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 partially 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.
It may be noted here that the COVID-19 lockdown has already hit paper works and operations of 21 auctioned Mines in Odisha. In 2019-20, Odisha earned mining revenue of Rs 10,943 crore, which constituted a bulk of its non-tax revenue. Despite the slowdown in economy, Odisha hoped to grow in the range of 7 per cent to 7.5 per cent during 2020-21. However, it is likely to be drastically revised as the mining sector would not grow as much despite the auction of 21 mines. Between April 1 and May 30, Odisha’s earning from mining was just about Rs 667 crore, about one-third than the same period of 2019-20 fiscal.
“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 expired by March 31, but since lockdown continues, it has been delayed for months, sources in Odisha Steel and Mines Department in Bhubaneswar, about 120 km away from here 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 to start but got delayed since the State and Union Governments has been extending lockdown, which is about to enter into its 5th phase,” they said. Since lockdown continues, Notices Inviting Tenders (NITs) for 9 Virgin Mining Blocks are yet not issued yet, they said.
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 in the last concluded high premium mining auction in Odisha.
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, JSW Steel, Vedanta, Tatas, Thriveni Earth Movers Pvt Ltd, and others also eyeing on these virgin blocks.
With lease period of 21 Iron Ore and Manganese Mines blocks under Joda-Koira circles of mineral rich Keonjhar and Sundargarh, ended on March 31 and for which, after completion of bidding, the Odisha Government has started issuing Letter of Intent (LoT) to Preferred Bidders, operations in at least 19 blocks including 7 in Koira and 12 in Joda closed their operations.
Near about 23 mines blocks including 15 under Koira and 8 under Joda Mining circles of Sundargarh and Keonjhar are still continuing operations as their lease period not expire.
Sources said, after closer of 7 mining blocks, as many 15 more still running under Koira mining circle of Sundargarh and 8 under Joda in Keonjhar. Jharkhand’s Chaibasa headquarters, Rungta Mines Ltd Group, has only 2 running Mines under Koira circle after it lost around 5 running blocks. Sources in Koira said, apart from RML, 1 each mines block running, is being held by Jindal Steel and Power Ltd, which also bagged the Guali Block under Joda circle, earlier held by RP Sao and Sons, Essel Mining and Industries Ltd, MGM Minerals Ltd, MG Mohanty, Penguin Trading Agency Pvt Ltd, JN Patnaik, SN Mohanty, National Enterprises, Korp Resources, OMC, SAIL, Kanakdhara Mining, Geetarani Mohanty, and KC Pradhan.
While under Joda Circle in Keonjhar, operational mines included 1 each of KC Pradhan, Tarini Prasad Mohanty, Indrani Patnaik, DR Patnaik, Tarini Minerals Pvt Ltd, Sarda Mines Pvt Ltd, Shree Metaliks, Prakash Industries Ltd and few others.
Operations under Joda Circle in Keonjhar, have been stopped at 12 blocks including KJS Alluwallia grabbing Nuagaon iron mines, KP Enterprises holding Thakurani Mines, Rungta Mines Ltd holding Jajang mines, Mangilal Rungta holding Kalimati siljoda Mines, Rungta Sons holding Katasahi Mines, Essel Mining holding Kasia Mines and Jilling Mines, KN Ram Roida –II mines, Kalinga Mining Corporation mines, Sirajjudin and Co Balada Mines, RP Sao Guali Mines and Pattnaik Minerals Joribahal Mines.
Operations stooped in 7 blocks under Koira in Sundargarh including AMTC Pvt Ltd, Teherai Iron and Managnese Mines of BICO Pvt Ltd, Kanther-Koira Manganese Mines of Rungta Mines Ltd, Kalmang Managanese mines of RML, Nadidihi Iron and Manganese BICO Pvt Ltd, Nadidihi Iron and Manangse mines of Feegrade &Co Pvt Ltd and Gonua Iron and Managnese block of PK Ahluwalia.
The Odisha Government has given 6 months extension time to old lease holder of as many as 21 Iron, Ore and Manganese mines blocks under Joda-Koira and Rairangpur circles of State’s mineral bearing Keonjhar-Sundargarh-Mayurbhanj districts, to transport their legalised produced minerals after the lease period expired on March 31 in view of the nationwide lockdown to prevent the spread of COVID-19.
