PPT to finalise iron ore plot owners list this month

Highest bidding was Rs 525 per sqr meter against base price of Rs 357

Paradip Port Trust (PPT) is in the process of finalising the names of successful bidders of iron ore plots inside the port area and the list is likely to be announced by the end of April.

"The list of successful bidders is almost complete. It may come out anytime in April”, said a source close to the development.

The port had started auctioning of iron ore plots as per a High Court order in August 2012. As per the direction, the port had canceled all 35 plot leases inside the port area.

Meanwhile, the port had invited tenders for 27 fresh plots late last year. About 20 applicants, most of whom have opted for more than one plots, have been selected as final bidders.

The base price for each plot was kept at Rs 357 per square meter per month, while highest bid was Rs 525 per square meter per month. Each plot measures 3,000 meter having manual iron ore handling facility.

As per traditional practice, iron ore plots were allotted to mineral traders and miners at fixed costs and their licenses for the plots were renewed every year with an increase of five per cent of base price.

The dispute arose when an iron ore plot holder Auroglobal Comtrade Private Limited discovered that the port management has adopted arbitrary practice in fixing the prices of the plot.

The company had alleged that some firms had been given plots for Rs 90 per square meter while it was asked to pay Rs 459 per square meter.

The High Court, in its order, said, the discriminatory practices adopted by PPT are unlawful.

The reserve price for mechanical plots is fixed at Rs  51.60 lakh, having sizes upto 5,500 square meters. The outcome of tender for mechanical plots is yet to be finalised.

Due to the auctioning of iron ore plots and storage problems, iron ore exports from Paradip, the only major port of Odisha, declined to 4.7 million tonne in 2012-13, apart from cues like poor demand and higher export duty. Most exporters preferred to ship the steel making commodity via Vizag port due to storage issues at the port, trade sources said.