Unlocking Odisha’s Mineral Wealth
Odisha, known for its abundant mineral resources, is home to some of India’s richest iron ore and manganese reserves. The state plays a crucial role in the country’s mining sector, contributing significantly to industrial growth and economic development. In a strategic move to enhance revenue and boost mineral production, the Odisha government has lifted its self-imposed embargo on mine auctions and invited bids for eight major mineral blocks in Sundargarh and Keonjhar districts.
Key Details of the Auction
The Steel and Mines Department recently authorized the auction of ten mineral blocks, with eight of them now open for bidding. These blocks primarily contain iron and manganese, essential minerals for the steel industry. Of the eight blocks, four are virgin mines, while the lease periods for the remaining four expired in 2021.
The Directorate of Mines and Geology has invited bids for the e-auction of the following mineral blocks:
Sundargarh District: Koira iron ore block, Jhumka-Pathiriposhi West iron ore block, Orahuri manganese & iron ore block, and Bhanjikusum manganese block.
Keonjhar District: Roida-I iron ore & manganese block, Putulipani iron ore block, Jalahuri iron ore & manganese block, and Roida-D manganese block.
Among these, Jhumka-Pathiriposhi West iron ore block, Orahuri manganese & iron ore block, Bhanjikusum manganese block, and Roida-D manganese block are virgin mines, offering fresh opportunities for exploration and production.
Regulatory Clearances and Auction Timeline
To expedite the operationalization of these mines, the government has ensured that the blocks come with statutory forest and environmental clearances. This move aligns with the Centre’s directive to streamline the mining sector and minimize delays in production commencement.
The key dates for the bidding process are as follows:
Last date to purchase tender documents: April 16, upon payment of a tender fee of Rs 5 lakh via the e-auction platform.
Last date for submission of bids: April 25.
Technical bid evaluation: Conducted in both digital and physical formats.
Odisha’s Leadership in Mineral Auctions
Odisha has remained at the forefront of mineral auctions in India. Over the past decade, 48 of the 457 auctioned mineral blocks nationwide have been in Odisha. Notably, the state witnessed its highest auction activity in 2019-20 with 25 blocks, followed by 10 in 2022-23 and nine in 2021-22.
Earlier, there was hesitation in conducting fresh auctions due to concerns over low bids and potential revenue losses. However, the state government’s renewed push demonstrates its commitment to optimizing mineral resources while ensuring long-term financial gains.
Boosting Revenue and Industrial Growth
The resumption of mine auctions is a significant step toward strengthening Odisha’s economy. The revenue generated from these auctions will contribute to infrastructure development, employment generation, and industrial expansion. With strategic planning and efficient regulatory frameworks in place, Odisha continues to reinforce its position as India’s mining powerhouse, driving economic progress while ensuring sustainable resource utilization.
(With inputs from agencies)
