Odisha likely to go ahead with Mining Auction despite resistance from Green Body

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By Our Correspondent

BHUBANESWAR: Even though stiff resistance coming from various forest rights and wildlife organisations, the Naveen Patnaik led Government in Odisha is likely to go ahead with its plan to auction 11 more mining blocks including both working and virgin.Since Odisha had already shifted its sitting Steel and Mines Secretary Surendra Kumar and posted DK Singh in his place, merchant mines owners and other bidders , who have applied for mining lease, are hopeful that something positive will come out by end of August.

The Lokshakti Abhiyan , a forest rights body, has  to the Chief Minister to cancel auctions of 7  virgin mines blocks that are coming under  Gandhalpada and Karlapat areas. More than 4000 acres of the Gandhalpada forest under Joda block in Keonjhar with iron mines in areas of Kasia, Jhumuka Pathariposi, Chendoposi is likely to be destroyed and it would deprive  thousands tribals and forest dwellers of their livelihoods. At least 9 Lakh trees would be felled for the mining projects.

Similarly, Karlapat forest in Kalahandi is equally eco-sensitive having more than 300 perennial streams and huge flora and fauna and pathway for wildlife like elephants. Besides these, forest dwellers including Kutia tribals depend on this forest for their livelihoods.

6 out of the 7 virgin mines have iron ores. There is no urgent need of iron ore for industries in the state as they have captive mines to produce steel. These auctions to handover resources to private companies at a cheaper rate to sell it in the open market for profits will leave future generations resourceless, it alleged.

Last month, Union Mines Ministry had requested Odisha among 11 major Mineral and Coal bearing States to facilitate auctions and implementation of mining reforms post MMDR Amendment 2021.

Odisha Director of Mines under the Steel and Mines Department   had issued Notice Inviting Tender (NIT) for online auction of dozen over mining blocks, including 7 virgin blocks.

The 7 iron ore blocks are — Nadidih (Bico), Purheibahal, Chandiposhi, Jumka Pathriposhi, Dholtapahar, Netrabandha Pahar (West) and Gandhalpada. Similarly, 2 iron ore and manganese blocks put under the hammer are — Nadidih (Feegrade) and Teherai. Kasia mineral block having both iron ore and dolomite has also been put for the auction. The government has put Karlapat bauxite mineral block, a virgin block, for auction.

The interested bidder can purchase the tender documents till August 19, 2021 while August 24 is the last date for submission of the bid. The tender fee for all the 11 blocks is Rs 5 lakh each. Accordingly, the government has invited financial bids in digital format only and technical bids in both digital and physical format.

“In exercise of powers conferred by Section 10 (B) of Mines and Minerals (Development and Regulation) Act, 1957 and in accordance with the Mineral (Auction) Rules, 2015 as amended from time to time notified thereunder, the Government of Odisha has identified 11 mineral blocks as under for electronic auction and hereby invites tenders for the purposes of grant of Mining Lease,” the directorate had earlier said. The four blocks, whose lease has already expired are Kasia Iron Ore & Dolomite Block, Nadidih Iron Ore Block (BICO), Nadidih Iron Ore & Manganese Block (FEEGRADE) and Teherai Iron ore & Manganese Block.

The Government has put only Karlapat bauxite mineral block, a virgin one, for auction along with these iron and manganese blocks. All these seven blocks are virgin areas. Bidders, who would bag these blocks, would have to develop blocks for mining.

Further, Sociedade De Fomento Industrial Private Ltd, Vishal LPG Industries and Tarama Apartment Private Ltd are debarred from participating in Nadidih Iron Ore Block (BICO), Nadidih Iron Ore and Manganese Block (FEEGRADE) and Teherai Iron Ore and Manganese Block, respectively.

The estimated iron ore reserve in these blocks is 574 million tones located at Pureibahal (38.30 Million Tonnes), Chandiposhi (33.73 MT), Jhumka-Pathiriposi (114 MT), Dholtapahad (23.92 MT), Netrabandha Pahar-West (17.27 MT) in Sundaragarh district; and Rengalaberha-North-East (28.87 MT), Gandhalpada (314.37 MT), Unchabali (3.6 MT) and Kalimati in Kendujhar district. While Kalimati is a manganese block (0.686 MT) and Unchabali is a mix of iron and manganese, the rest blocks are iron ore. Iron ore is the raw material for steel production.

The state auctioned all the 24 mines in FY21 whose lease got expired. As on date ,19 of the 24 auctioned mines have already started operation and production.These 24 Mines holds Iron Ore  1716.92 mt, Manganese 8.77 mt  and Chrome Ore having 104.96 mt, which was worth Rs.4,87,082.55 Crore. Out of 24 Mineral Blocks, 11 are in Keonjhar, 8 in Sundargarh 03 in Jajpur and 1 in Mayurbhanj.

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