Odisha News Insight

Odisha announces Public Auction of all Non-Coal Mines

Mining-OdishaOdisha became the first state in the country to announce open bidding or public auction of all mineral products in the state except coal. The captive and non-captive mines will go through separate auction. The decision won’t affect OMC and nationalised mining companies.

Through the open bidding system, the highest bidders will get the mines in respective categories. All mines that are awaiting second or subsequent renewals, will be allocated only through public auction route. However, the mines awaiting first renewal, will be exempted.

The state government expects to earn over Rs 10,000 crore per annum through this public auction route. The decision may have far reaching consequences in the mining sector of the country. It is seen as a welcome step although some miners may take the legal route to save themselves. They argue that Odisha Government does not have power to unilaterally announce the auction of mines, as it is not permissible under the MMDR Act.

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