India: HC issues stay on auction of Karlapat bauxite deposit

The High Court of Orissa has granted a stay on the auction of Karlapat bauxite deposit in Odisha. Mythri Infra had contended it had been unable to file an online initial price offer on MSTC's website. The possible stay and the details of the case had been reported by SteelMint last week.

A postponement could help other bidders including Vedanta Aluminium which is seeking a review of the Centre's pricing methodology for bauxite.

The current formula arrives at an average sale price by taking aluminium content in bauxite and multiplying it by LME price, the contentious aspect it considers of 6.40% as the cost of bauxite in the cost of producing aluminium. Aluminium makers and industry bodies such as FICCI and Aluminium Association of India have made representation to address this issue before the auction of the first bauxite deposit in the state.

The state had also not wait for the final notification of the Eco Sensitive Zone (ESZ) of the adjoining Karlapat Wildlife Sanctuary. It's suggested part of the area touching the proposed mine have no buffer zone, despite the fact that as per SC orders mining cannot be permitted within 1km distance of any wildlife of protected area.