Fresh Auction For Mines

Odisha Government has decided to go for fresh auction process for 20 Iron Ore and Manganese Mines, whose leases are expiring on 31 March, 2020.

Department of Steel & Mines has directed the Director of Mines to initiate a fresh process for Major Mineral Blocks, while issuing single Notice Inviting Tenders (NIT) for such auction in an order issued on 2 December, official sources said.

According to official sources as per discussions and deliberations held in the recent meetings of the Technical Evaluation Committee(TEC) and the High Level Committee(HLC), the State Government decided to annul the auction process initiated vide NITs dated 04.10.2019, dated 14.10.2019 and dated 18.10.2019.

Consequently, the Bank Guarantees furnished by the bidders in response to the annulled NITs shall be returned to the participants in the tender process.

And the State Government has decided to begin fresh auction process under one NIT, which shall be initiated immediately in respect of 20 leases expiring on 31 March, 2020 those were covered under annulled NIT dated 04.10.2019 and NIT dated 14.10.2019.

The auction process for Mineral Blocks notified against annulled NIT dated 18.10.2019 shall be scheduled subsequently, officials say.

The reservation of Mineral Blocks for end use including the definition of end use and the Reserve Prices, as approved earlier shall be retained as such in this fresh auction.

Officials say that the time schedule for auction of aforesaid 20 blocks of expiring leases as finalized in consultation with the Transaction Advisor (TA) has been intimated to the Director Mines.

According to sources fresh NIT will be issued on 6 December and the commencement of sale of tender papers will begin from that day.

Last date for sale of tender document is set on 30 December, said sources.

According to latest time line letter of Intent to the successful bidder will be provided between 10- 29 February, 2020 by the State Government.

So though the State Government has initiated fresh tender process, it will be done in a time bound manner, pointed out an official.

Notably, the Union Government is harping on expediting the process of auction as all the major mines leases are coming to an end on 31 March, 2020.

Union Secretary Steel Binoy Kumar time and again is requesting the State Government to speed up the process so that after getting the leases, the firms will be able to get statutory licenses in time.

Mr.Kumar has also requested the State Government not only to expedite the auction process but also set system to provide statutory clearances in a stipulated time.

This is because the Ministry of Steel is apprehending that there will be shortfall of 50 Million Tons of iron ore during this period, which will hit the Steel Sector badly.

Accordingly the State Government has been urged to chalk out an Action Plan in this regard so that Steel Makers will not face the crunch of raw material as India is eyeing to produce 300 Million Ton of Crude Steel by 2030.

eXTReMe Tracker
Powered by Catalyst IT Solutions Pvt. Ltd.