BHUBANESWAR Jun 30, 2016: The Centre on Thursday asked the state government to expedite the mining auction process as Odisha is way behind in the auction process as compared to other mineral bearing states. Even more than a year after the new mines and minerals (development and regulation) Act, the state has so far auctioned only one iron ore block in Sundargarh district.

Though the Union ministry of mines has come up with a list of 31 blocks, auction process for which has already been initiated, no blocks from Odisha are figured in it. These blocks are five from Andhra Pradesh, fourteen from Karnataka, four Madhya from Pradesh and eight from Maharashtra.

"We have asked the state government to put more blocks on auction. The chief secretary has promised us to initiate auction process of at least two blocks within a month. The process is delayed due to slow pace of exploration and other internal matters," said Union mines secretary Balvinder Kumar after a meeting with chief secretary A P Padhi here at the state secretariat.

Kumar, however, clarified that no issues were pending with the Centre regarding auction of mining block in Odisha. Sources in the steel and mines department said the Centre has not allowed auction of any block from Odisha as no blocks were upgraded to G-2 level of exploration.

According to the auction rules, if mineral content proves through (G-3 level of exploration), the state government needs to upgrade it to G-2 level before putting it for auction. Under G-2 level of exploration, the preferred bidders would get mining license (ML) directly, sources said. According to sources, the state government has lined up six iron ore, limestone and bauxite blocks for auction. The combined market valuation of these blocks is estimated at Rs 18620 crore.

Among the blocks identified for auction by the state government, two are iron blocks - Netrabandh Pahad and Kalmang South (both in Sundargarh district), three limestone deposits - Kottameta in Malkangiri district, Garamura in Nuapada district and Jampalli-Pikrijharan in Bargarh district. The Malda block in Koraput district is the lone bauxite block ion offer.

As the aluminium industries in the state are facing acute shortage of raw material, Kumar urged the state government to put more bauxite blocks on auction. Acute shortage of raw material has forced Vedanta to announce closure of its 1 mtpa alumina refinery at Lanjigarh. The company despite setting up its plant is struggling to arrange raw material to run the plant to its full capacity.

Though the company has approached the state government several times to sort out the raw material issue, it is yet to overcome the crisis.

(Source: http://timesofindia.indiatimes.com/)