Survey starts for auction of Odisha mineral blocks

State expects six blocks to be auctioned by December

The Odisha government has started survey of 13 mineral blocks identified for auction under the amended Mines and Minerals (Development & Regulation) MMDR Act, 2015.

The DGPS (Differential Global Positioning System) survey would be undertaken by Orissa Space Application Centre (ORSAC). It is expected to be completed by the end of August this year.

"The survey work has been initiated in respect of mineral blocks identified for auctions. We hope that auction for six blocks would begin by December this year," said a senior government official.

The state government has lined up 13 mineral blocks for auction after the Union mines ministry recently notified the Mineral Auction Rules, 2015 under MMDR Act.

Out of the 13 identified blocks, six are in the G2 exploration stage with the balance seven in the G3 level. The Auction Rules state mineral blocks need to have reached the G2 level of exploration to be considered eligible for auction.

The six G2 level blocks includes five iron ore mines- Sagakhai, Ghodabirami, Dholta Pahad, Balia Pahad, Jhumuka Pahad, all in Sundargarh district and one limestone deposit - Kotamela in Malkangiri district.

In the G3 stage are four iron ore mines - Mankadanasha, Puraibahal, Chandiposhi, Khandadhar in Sundargarh district and three manganese ore deposits - Lasarda, Pacheri and Kendudihi in Keonjhar district.

According to the Auction Rules, the state government will have the discretion to reserve particular mine or mines for any particular end use. Auctions can be conducted only through an online electronic platform. The state government may utilise any online platform which meets the minimum technical and security requirements as specified in the guidelines for compliance to quality requirement of e-procurement issued by the standardisation testing and quality certification directorate under department of information technology.

The Union government has proposed an upfront payment of 0.5 per cent of value of resources by companies, who secure licence for mining major minerals like iron ore through auction.

The new rules proposed by the Centre prescribe that minerals such as bauxite, iron ore and limestone can only be reserved for the end-use of alumina, integrated steel plants and cement plants by state governments. However, a manganese mine can't be reserved for any end-use.