India: Jharkhand govt annuls auction for Ghatkuri Iron Ore Block-I

According to a notification by the Jharkhand government, the auction process for the Ghatkuri Iron Ore block-I has been annulled by the state government. The block was first tendered almost a year back in February 2022; however, it was postponed more than once for various reasons, including forest clearances.

In the past, the Jharkhand government was forced to postpone and cancel auction of another iron ore block, after the state's own Mineral Development Corporation decided to outbid everyone else with an initial price offer of 122%.

The block is located in West Singhbhum, Jharkhand, having an area spread over 149.73 Ha and total available iron ore (Fe 55.24%) resources of 202.39 mnt.

In March 2023, technical bids for Ghatkuri 1 iron ore block was opened and steelmakers like JSW, JSPL, AM/NS India and Vedanta, were bidders for the block. They were competing against MSPL, Rungta and with the state's own public sector enterprise, Jharkhand Exploration and Mining Corporation Limited (JEMCL).

Jagannath Steel and Nirjhar Commodities (a related party of Shyam Metalics) had also placed technical bids for this block.

The MMDR Act allows the government to reserve a block for a PSU. The state can do so but requires central government approval. Reserving a block for a state PSU may not be an easy task particularly since the Centre has in the past turned down Jharkhand's request to reserve all operating mines set to expire.

The Centre had directed the state to attempt to auction the blocks first. (In Odisha blocks whose auctions were unsuccessful were handed over to the state mining corporation for 10 years.)