Even as the Centre has approached the Odisha Government to put more mines on action, the latter seems not to be in a mood to go for auction of mines as a dull metal market exists now.
Experts in metal sector feel that if the Government goes for auctioning mines now, it would get fewer prices. So they advise the State to adopt a “wait and watch” approach now. However, the Union Government is not in a mood to go slow over auction of mines in Odisha. It asked the State Government to take steps for putting seven to eight blocks on auction as early as possible.
“We have requested the State Government to put 7-8 mining blocks on auction as early as possible,” Union Mines Secretary Balvinder Kumar told reporters after a meeting with Chief Secretary AP Padhi here. Stating that auction of mines has been delayed in the State, Kumar said problems relating to conversion of mining blocks from G-3 to G-2 level of exploration has been cited as a reason behind the delay. This apart, there are some internal problems, he said, adding that the Chief Secretary has assured the Centre that necessary steps would be taken to put some mining blocks on auction within a month.
Kumar made it clear that no issue was pending before the Centre as far as delay in auction is concerned. As per auction rules, the State Government needs to upgrade mining blocks from G-3 level of exploration to G-2 level before putting it for auction, sources said. Only one mining block in the State has been put to auction so far. Referring to aluminium sector, the Union Secretary said the need to enhance aluminium production for the proposed Aluminium Park was also discussed. The Navaratna PSU Nalco and the State Government would work out mechanism to determine the cost at which primary aluminium would be supplied to the industries.