India: Odisha govt to auction ten mineral blocks after 2 year gap

• 6 virgin blocks, 4 expired leases up for sale
  
  
• List includes Karlapat block in Kalahandi
  
  

Almost two years after its last auction, the Odisha government plans to put up ten blocks for sale, with a notification expected to be issued very soon. The list, as seen by BigMint, includes the expired iron ore lease of Essel Mining for the Koira iron ore block in Sundargarh and three other expired leases in Keonjhar, which include the Roida I iron and manganese mine, the Putulipani iron ore block, and the Jalahuri iron ore and manganese block.

The remaining six mines are virgin blocks. These include three blocks in Sundargarh - the Jhumka-Pathiriposhi West iron ore block, the Orahuri manganese block (comprising iron ore deposits as well), and the Bhanjikususm manganese block. In Keonjhar, the Roida-D manganese block will be up for sale. The state will also be auctioning off two bauxite mines, including the considerable Karlapat block in Kalahandi, which had earlier gone into litigation.

Four years ago, Odisha, the country's largest iron ore producer, had led the way into a new mining regime, with extremely "successful" auctions of operating iron ore mines. The high premiums and revenue gained, touching nearly INR 50,000 crore in FY'21-22, have set steep expectations for auctions, with the Centre often referring to Odisha as an example for other states to emulate.

However, of the 40 blocks auctioned so far, only about 24 are operational, with the last mine sold in January 2023. This long gap of two years, amid the national and coinciding state elections, has not been explained.

Since June, a Bharatiya Janata Party (BJP) government, with Mohan Majhi as Chief Minister, has replaced the Naveen Patnaik administration, which was in power for more than two decades. At the end of August, the new state steel and mines minister, Bibhuti Bhusan Jena had informed the assembly that the government had lined up 30 blocks for auction in the current financial year 2024-25 (FY'24-25), and the differential global positioning system (DGPS) surveys, land schedule procedures, and other formalities had been completed for 14 of them.

However, a senior industry member cautioned, "We are nearly in December. Even if the government announces the auction of these blocks, it would be difficult to complete the entire auction process before the end of the financial year."