20 Mine Blocks To Be Auctioned In Odisha

After the cancellation of tenders in October amidst controversy over previous bid documents, the Odisha government will again invite bids for 20 iron and manganese mine blocks on the 6th of December.

“Administrative inconvenience” was the officially stated reason for the discontinuation of the tenders but inside sources blame it on wrong interpretation by bidders.

“The real flaw was not in the contentious clauses in the tender document. Rather, it was how these norms were interpreted by the bidders,” said an insider. “For instance, the model tender documents allowed a subsidiary to show the net worth of its parent concern and this made the subsidiary company eligible to bid for a mineral block. But the same norms did not allow a parent company and its subsidiary to compete for the same block till the last leg of auctions. This lack of clarity elicited a backlash from a few competing bidders,” he added.

The renewed tender documents will consist of recast guidelines that would explicitly impose rules that will overcome past aberration. With the new rules in place, a subsidiary would still be able to use the net worth of its parent firm to apply for a mineral block. SBI Caps, the consultant for mineral block auctions have been alerted by the state steel and mines department to work on the fresh tender documents.

New Notice Inviting Tenders have been issued concerning 20 blocks as of December 6. The last date of submission of the bid is on 3rd January 2020. The work of forwarding electronic auctions and the submission of the final price offer on the auction stage will be conducted between January 31 and February 21, 2020, while the Letter of Intent (LoI) is to be issued from February 10 to February 29, 2020.

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