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Bhushan Power & Steel wins Netrabandha Pahar iron ore block

BPSL won the block with a quote to share 87.15% of the revenue from mining operations with Odisha

BS Reporter  |  Bhubaneswar 

Bhushan Steel

(BPSL) has emerged as the preferred bidder for the block in Odisha after 17 hours of intense bidding that ended on the wee hours of Saturday at 3:56 am. BPSL won the block with a quote to share 87.15% of the revenue from mining operations with the state government.

BPSL is the second Bhushan Group firm to have bagged an block through auctions in Odisha. On Friday, Bhushan Steel Ltd won the Kalamang block reserved for an integrated steel plant, outbidding strong contenders like Tata Steel, Jindal Steel & Power Ltd (JSPL), JSW Steel and others.

For the block meant for merchant mining, 16 bidders were in the fray initially. The who had submitted technical bids for are Serajuddin and Company, Shri Bajrang Power and Ispat Ltd, NMDC, MSPL Ltd, Maithan Ispat Ltd, Feegrade & Company Pvt Ltd, JSPL, Ltd, JSW Steel Ltd, Essel Mining & Industries Ltd, Vedanta Ltd, Rashtriya Ispat Nigam Ltd (RINL), Shri Jagannath Steels & Power Ltd, Orissa Metaliks Pvt Ltd and Tata Metaliks Ltd. Later, the list narrowed to seven for the financial bids.

The block located in Sundargarh’s Koira sector has geological reserves of 77.25 million tonnes of which 61.9 million tonnes are high grade deposits. The total concession area is spread over 139 hectares with forest land making up 112 hectares. The onus would be on the successful bidder to obtain all regulatory clearances.

Odisha was also the first state to auction an block — the Ghoraburhani-Sagasahi block bagged by Essar Steel. Essar Steel has proposed a production capacity of 7.16 million tonne per annum (mtpa) run of the mine product from the block. As part of the project, the steel company is also setting up a crushing & screening plant and a beneficiation plant with a capacity of 6.7 mtpa over an area of 139.16 hectares (ha) at Ghoraburhani, Sagasahi and Kalmang villages situated in Sundargarh district.