Odisha govt to engage SBI Caps, MSTC for mine auctions

SBI Caps would be the transaction advisor for auctions while MSTC is going to offer the online platform for e-auctions

The Odisha government would shortly issue an order for nomination of SBI Caps and MSTC Ltd for conduct of mineral block auctions.

While SBI Caps, a fully owned subsidiary of State Bank of India (SBI), would be engaged as the transaction advisor, central PSU, MSTC Ltd is going to offer the online platform for e-auctions.

“We have informed the Government of India on our state of preparedness for mineral block auctions. The state is ready to organise auctions from November. The DGPS (Differential Global Positioning System) survey for the identified mineral blocks is expected to be completed by the end of September. Thereafter, we can start auctions,” said director of mines Deepak Mohanty.

The government of India, on August 4, reviewed the preparedness of all states on mineral block auctions at the meeting of the central empowered cum coordination committee (CECC).

The state government has lined up 19 mines for auctions. Out of these, two deposits- Khandadhar and Mankar Nacha are set to be reserved for state PSU, Odisha Mining Corporation (OMC). The rest 17 blocks would be put up for public auctions.

Recently, the central mines ministry had asked all state governments to expedite the auction process.

“The state governments have to take prompt action for auctioning of minerals by way of identification and demarcation of mineral blocks, assessment of mineral block, assessment of mineralisation of the block, auction facilitation, various decisions to be taken about tender process, reserve price fixation, reservation for end use, eligibility criteria, tender price and bid security amount,” said the letter from the ministry.

To kickstart the auction process, the state government has already formed a committee under its development commissioner U N Behera. The committee’s mandate is to monitor the preparatory work relating to auction of major mineral concessions including conduct of DGPS survey and preparation of tender documents.

Also, the committee would advise the government on earmarking of leases for reservation for PSUs for auction of MLs (mining leases) and auction of PL cum ML. Moreover, the panel would advise the government on prioritisation of mineral exploration work to facilitate auction/reservation of leases.