Odisha begins auction process for 11 major mineral blocks in five districts

The state has invited bids for bauxite, iron ore, manganese, limestone and aluminous laterite blocks to support mining expansion and industrial growth

The Odisha government on Friday began the auction process for 11 major mineral blocks comprising bauxite, iron ore, manganese, limestone and aluminous laterite deposits to boost the state’s mining output and support the expansion plans of steel, aluminium and cement industries.

 

The Directorate of Mines and Geology issued the notice inviting tenders for the grant of mining leases for eight mineral blocks and composite licences for three bauxite blocks. The mineral blocks are located in Kalahandi, Rayagada, Sundargarh, Keonjhar and Bargarh districts. The auction process will be conducted electronically, with bids to be submitted by July 13.

 

The mineral blocks include two standalone bauxite mining lease blocks, one iron ore block, one iron ore and aluminous laterite block, two iron ore and manganese blocks, one manganese and dolomite block, and one limestone block. Besides, three more bauxite blocks have been put up for auction under the composite licence mode involving prospecting and mining rights.

   

Among the most significant deposits is the Karlapat bauxite block in Kalahandi district, one of Odisha’s most debated mineral reserves because of its proximity to the ecologically sensitive Karlapat Wildlife Sanctuary.

 

Official estimates indicate that the Karlapat reserve contains around 220 million tonnes of bauxite spread over more than 3,100 hectares. The block has remained at the centre of environmental concerns for more than a decade due to its location near elephant corridors and forest areas. Earlier attempts to auction the block had faced legal and environmental hurdles.

 

The Nunapaimali bauxite block in Rayagada district, another strategically important aluminium raw material source, has also been listed for mining lease auction. The block holds around 18.24 million tonnes of bauxite reserves.

 

The state has also offered three bauxite blocks under the composite licence mode. The blocks — Tikirimali-Budharajamali, Tikriguda-Maliguda and Nangalmarhimali — are also located in Rayagada district. These blocks are expected to attract interest from major aluminium producers and mining companies seeking long-term access to bauxite reserves. The Rayagada-Kalahandi belt is considered one of India’s richest bauxite zones and is critical for the country’s aluminium sector.

 

In the iron ore category, the Gadadharpur iron ore block in Keonjhar district is among the key assets put up for auction. Keonjhar is Odisha’s largest iron ore-producing district and hosts some of India’s highest-grade hematite deposits. The block is expected to draw intense competition from steelmakers looking to secure captive raw material sources amid rising domestic steel production.

 

The Jaldihi Tantigram iron ore and aluminous laterite block and Patamunda-B manganese and iron ore block in Sundargarh district have also been offered for mining lease. The other two major mixed mineral assets are the Barpada South iron and manganese ore block in Sundargarh district and the Kendudihi-Parulipada manganese and dolomite block in Keonjhar district.

 

The Directorate of Mines and Geology has also put up the Behera Banjipali Limestone Block in Bargarh district for auction. The limestone reserve is expected to attract cement manufacturers looking for raw material security amid growing infrastructure and construction demand.

 

Officials said all 11 blocks are virgin mineral blocks. The state government has fixed the tender document price at Rs 5 lakh for most blocks, while the limestone block has been priced at Rs 2 lakh. Tender documents will be available from June 1 and bidders can purchase them till July 6.

 

The latest auction round comes at a time when several steel and aluminium companies are expanding capacities in the state amid growing domestic demand and India’s push to become a global manufacturing hub.

 

The auction of new mineral blocks is also expected to generate substantial revenue for the Odisha government through auction premiums, royalties and statutory levies while creating opportunities for downstream industries and mining-linked infrastructure development.

 

The state government had prepared 30 mineral blocks for auction in 2025-26. Of these, eight were auctioned, while the state had received bids for 11 out of 12 virgin mineral blocks for which bids were invited in December last year.

 

As many as 34 mineral blocks, including 25 major mineral blocks and nine critical and strategic mineral assets, have been lined up for auction in the 2026-27 financial year. The upcoming auction round, for the first time, includes three gold-bearing blocks.