Tata Steel, JSPL, Essar bid for Odisha's iron ore block

The Ghorhaburhani-Sagasahi block has deposits of 99.59 million tonne

Seven steel making firms, including a PSU, have submitted technical bids for the Ghorhaburhani-Sagasahi iron ore block with deposits of 99.59 million tonne.

"The technical bids for the block were opened today. Tata Steel, Jindal Steel & Power Ltd (JSPL), JSW Steel, Bhushan Steel, Bhushan Power & Steel Ltd, Essar Steel and public sector firm Rashtriya Ispat Nigam Ltd (RINL) are among the bidders", said an official source.

There were no takers for a limestone block for which technical bids were also opened today.

The Ghorhaburhani-Sagasahi iron ore block is at G2 exploration stage and located in Koira sector in Sundargarh district. The block has been reserved for integrated steel plant as end use and mining lease (ML) will be issued to the successful bidder.

The mineral concession area is spread over 139.16 hectares (ha) including 20.88 ha forest land, 110.69 ha government land and the balance 7.58 ha private land. Survey of the mineral block has been done by the Geological Survey of India (GSI).

The successful bidder who bags ML for the block will obtain all statutory licenses and permits needed for mining like forest clearance, wildlife clearance, environment clearance, consent to establish, permission for mine opening and consent of the gram sabhas.

In the first round of e-auction, the bidder is required to submit the technical bid and initial price offer which would be a percentage of value of mineral despatched and must be equal to or greater than the reserve price. The highest initial price offer among the technically qualified bidders would be the floor price for the second round of online auctions.

In the second round of e-auctions, the qualified bidders would submit their final price offers which would be a percentage of the mineral despatched and must be greater than the floor price. The e-auction process would be annulled if none of the qualified bidders submit final price offers. The qualified bidder who submits the highest final price offer would be declared the 'preferred bidder'.

Then, the state government would issue a 'Letter of Intent' to the preferred bidder upon payment of first installment of the upfront payment. The state government and the state government would enter into a mine development cum production agreement.