By Bizodisha Bureau, Bhubaneswar, October 28, 2019: Odisha may not succeed getting good response from potential bidders of for nine new freehold mineral blocks notified for online auctions scheduled in third week of November.

Odisha is also conducting auctions of 20 more merchant mine blocks whose lease validity ceases by March 31, 2020. Stakeholders feel that the freehold or new mineral blocks may lose out to the lapsing merchant blocks where it will be easier to recommence mining and achieve seamless production and despatch.

The state steel and mines department has issued the Notice Inviting Tenders (NIT) and tender documents in respect of nine iron and manganese ore blocks – Purheibahal, Chandiposhi, Rengalaberha North-East, Gandhalpada, Netrabandh Pahar (West), Dholtapahar, Jumka Pathriposhi, Unchabali and Kalimati on October.

Odisha has hitherto successfully auctioned two lapsable merchant chromite mines- Misrilall Mines and Kamarda mine in the leasehold of B C Mohanty. Both leases were cornered by T S Alloys, a fully owned Tata Steel subsidiary. T S Alloys placed steep bids for bagging both mines- 88.5 per cent (of the sale value of the block) for Misrilall Mines and 96.8 per cent for Kamarda.

If the initial outcome at these mines is any indication, the bidding momentum is likely for the other mines as well, especially some of the prized deposits in iron ore. To stave off lower bids, the state government has kept the reserve price of blocks a bit on the higher side. For iron ore blocks with resources up to 10 million tonnes (mt), the floor price is kept at 15 per cent of the sale value of the mineral asset. And, in case of blocks with deposits beyond 10 mt, the reserve price is 25 per cent. In case of the immense Gonua mine now held by big merchant player KJS Ahluwalia where the net estimated deposits are in excess of 700 mt, the reserve price is staggering at 50 per cent, a source in the know confirmed. For all manganese ore mines, the bid price is uniform at 15 per cent.

Key merchant mines now controlled by Serajuddin, KJS Ahluwalia, Aditya Birla owned Essel Mining & Industries Ltd and others have been notified for electronic auctions.