By Our Correspondent
BHUBANESWAR: It seems, high premium mining auction discouraging both production and dispatches in Odisha. Take a look at the mining auction of last year, where 19 blocks auctioned and this year 11 put for hammer , while 3 blocks already bagged by 2 big players like Vedanta Group and JSPL. As many as 3 Iron Ore, Dolomite and Manganese Blocks have been auctioned so far out of 11 put for auction in second phase in Odisha till Wednesday morning.
Odisha is among the mineral-rich states of the country and is a leader in the production of minerals like iron ore, bauxite, coal. According to Odisha’s Economic Survey 2020-21, the state contributed 34.3 percent of the total mineral production in the country while Iron ore production from the auctioned leases in Odisha decreased by 63% on the year in FY’21.
So far, Vedanta Group’s ESL bagged 2 blocks of Nadidih Iron Ore and Manganese Block (FEEGRADE at a premium of 92.30 % and Nadidih Iron Ore Block (BICO) at a premium of 95.6% while Naveen Jindal led Jindal Steel and Power Limited had bagged the Kasia Iron Ore-Dolomite Mines block under Joda mining circle in Odisha’s mineral rich Keonjhar at a premium of 118.1%. JSPL had earlier surrendered its Guali Iron Ore Block citing boundary issue and low grade minerals.
In last auction held for 19 blocks, where Nadidih Iron Ore and Manganese Block (FEEGRADE and Nadidih Iron Ore Block (BICO) were auctioned at a premium of more than 135% and were bagged by Goa based Fomento and Vishal LPG Fuels Pvt Ltd. Both surrendered these mines blocks citing changes in auction rule.
Out of the 19 auctioned blocks in Odisha last year, 14 have commenced production in fits and starts through 2020. While 3 of the blocks have been put up for re-auction this time, two non-operationalised blocks were allocated to Odisha Mining Corporation (OMC).
In August 2021, JSW Steel wrote to the Odisha government expressing its intent to surrender “the entire area of the Gonua iron ore mining lease under Rule-21 of Mineral Concession Rules (MCR), 2016 with effect from August 12, 2022.” The leading steel producer had won the mine for a premium of 132% in the 2020 auctions.
JSW has moved the Orissa High Court against the state government’s INR 696.32 crore notice for shortfall in despatches from its Jajang iron ore mine. A year after they were auctioned, many of the mines in Odisha failed to meet their respective MDPA targets and were slapped with notices. JSW Steel, AMNS, Tata Steel, KN Ram, and Serajuddin & Co. have moved court. Sarada Mines Limited also moved Court seeking extension of lease period for another 10 years after its lease ended.
