Karnataka invites bids for 9 ‘C’ category iron ore mines

26 June 2017

Karnataka’s department of Mines and Geology has issued an invitation for bids to grant nine ‘C’ category iron ore mining leases through e-auctioning, but there are still doubts about the amount of profit state government is going to make in the e-auctioning. It is said the government may or may not make the expected profit. The reason is that the five of the nine mining leases included this time were not auctioned last time.

As per the direction of the Supreme Court, which in its final order in April 2013 directed the state government to cancel 51 C-category mining leases for rampant illegal mining and re-allot the leases to end users in a transparent manner, the department has, for the second time, issued the invitation for bids to auction the ‘C’ category mining leases. Last time, the state government identified 14 ‘C’ category mining leases for e-auctioning. But there were no bidders for five mining leases. Hence, this time, nine mining leases, including the five leases not e-auctioned last time, have been identified for e-auctioning.

The ‘C’ category mining leases are classified based on the extent of illegalities committed by the lessees in Ballari, Chitradurga and Tumakuru districts. The total area of the nine mines is 308.75 hectares.

Last time, of the seven mines that were e-auctioned, five had been auctioned at high rates. The remaining has not been identified for e-auctioning this time. The department is also curious about the amount of profit it is going to make through the e-auctioning of the mines. Only end users engaged in production of sponge iron, pig iron, steel and pellets are eligible to take part in the e-auction. A consortium of end users cannot take part in the e-auctioning, the department sources said.

Source : expressnewsservice