BHUBANESWAR | Jan 18, 2017: After successfully auctioning three mining blocks, the state government is going to put two more iron ore blocks - Netrabandhapahad and Kalmang (both in Sundargarh district) - under the hammer.

"The differentially global positing system (DGPS) survey, a mandatory process before putting blocks on auction, has already been completed for these two blocks. Notification for auction would be issued within the next one month," a source in the state steel and mines department said.

The Centre had earlier asked the state government to expedite the mining auction process as it was quite slow in Odisha compared to other states. Karnataka has auctioned the highest (more than seven blocks) among all states.

Odisha has so far auctioned three blocks - Ghorhaburhani-Sagasah (iron ore), Kottameta (limestone) and Lasarda-Pacheri (manganese). While Essar Steel Limited bagged the iron ore block in Sundargarh district in March, 2016, Dalmia Cement (Bharat) Limited and Thriveni Earthmovers Private Limited (TEPL) bagged the limestone and manganese blocks, respectively.

"The state government had received good response from bidders. Five firms each had qualified for the financial bidding process of the iron ore and manganese blocks, while there were three for the limestone block," an officer said.

What raises concern for the state government is the poor response from bidders for the two limestone blocks. The state government has cancelled the auction process of Garamura and Uskalvagu limestone blocks since no bidders applied for these two during the previous two auction process. Geographical location of these two blocks was considered a disadvantage and one of the reasons behind the lukewarm response to the auction.

The auction of blocks is crucial as there was negative growth in collection of revenue from mining and metal sector which contributes the lion's share to the state's collection.

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