The Odisha Government has revoked the Letter of Intent (LI) in favour of Shyam Ores (Jharkhand) Private Limited for grant of mining lease for Jilling Langalota mine and forfeited all three installments of upfront payment totalling Rs 90,60,13,852.
Outstripping other bidders, Shyam had emerged as preferred bidder for the mine over an area of 456.037 hectare of land, quoting a premium of 135 per cent. Other companies who had participated for the block were Adani, Serajuddin, Amalgam, JSW, Forway, TP Sao and Essel Mining. The Essel Mining was the existing lessee of the mine and has EC limit of 6.28 MT pa and resources of 79.122 MT.
The Government revoked the LI as the preffered bidder Shyam Ores failed to comply with the prescribed requirements timely to be considered for being declared as the successful bidder followed with subsequent grant and execution of mining lease deed with the extended deadline.Hence, the Government pointed that Shyam is liable for action pursuant to clause 4.3 of LoI read with rule 10 (6B) of Auction Rule 2015.
Notably, the former lessee had filed a writ petition in the Supreme Court seeking extension of its lease period. The apex court vide order Dt 14.2.2020 had ordered that the auction would be held subject to final order of the court .