Auction: Odisha executes 17 mining leases- Govt data

The Odisha government has executed mining leases with 17 leaseholders of the 24 mines auctioned earlier this year, quickening the process of restarting operations at these mines.

Odisha had auctioned 19 iron ore and manganese, three chromite and two manganese mines in recent auctions after previous leases expired on 31 March. These iron ore mines owned by merchant mining companies supply a large chunk of Odisha's iron ore. Major steel players such as JSW Steel, JSPL, AMNS India and Fomento have bagged leases at this auction.

Vesting orders, which precede grant of leases, have been executed for 21 of the 24 mines. Two mines, Guali and Jilling, are currently in litigation while the process for grant of vesting order for the Badampahar block, which was the latest mine to be auctioned off, is currently ongoing.

Two iron and manganese (Nadidi and Teherai) blocks won by Vishal LPG and Tarama apartment are yet to pay the security deposit. Incase they delay the process, the government may re-auction these blocks, SteelMint learned from sources.

Steps involved after a mine is auctioned

After a company casts the highest bid for a mine, the state government issues an LOI to the preferred bidder upon receiving the first installment of the upfront payment. After paying the amount of the second installment of the upfront payment, filing of the mining plan, and satisfying other conditions, the preferred bidder is then considered a successful bidder, whereupon vesting orders are issued.

The successful bidders have to then obtain all consents, approvals, permits, and no objections and pay the third installment of the upfront payment and sign the Mine Development and Production Agreement with the State Government for grant of the mining lease deed.

After the grant of mining lease and commencement of production, the successful bidder pays the auction amount to the state government. Successful bidders of existing mines are deemed to have acquired all valid rights/approvals/clearances/licenses for a period of two years, allowing them to start mining operations without any loss of time.

Track the Execution of Lease deeds of Odisha mines auction as of 10th July 2020 below: