Odisha to study Karnataka iron ore e-auction model

The state steel and mines department has decided to send its officials to Karnataka to study modalities of iron ore e-auction there, as it is gearing up to start selling minerals thorough a single electronic platform here.

Two officials from state steel and mines department and one from CSM technology will go and study iron ore e-auction patterns, modalities and challenges in Karnataka. They will submit a report to the state government thereafter on implementation of the scheme here along with their suggestion, said a senior government official.

CSM technology is the IT arm of the steel and mines department and helps maintaining daily mineral transaction data on website orissaminerals.gov.in.

Though the state government had constituted a committee last September to channelise all mineral trading through its PSU Odisha Mining Corporation (OMC), it later dropped the idea as private miners opposed the move, questioning the states power to do so. The idea to start e-auction in Odisha is inspired from Karanata, where e-auction of minerals is in place since 2011 following a Supreme Court order. The apex court, after banning the mining activities in the sourthern Indian state, had allowed e-auction of stacked minerals under supervision of a monitoring committee. But since such order was valid only for Karnataka, Odisha miners objected to the state government plan and stalled the move.

It would be difficult for the government to bring all private miners on board for e-auction, but I think the OMC can start e-auction of its own iron ore from October, said the government source.

OMC, which controls about a tenth of 60 million tonne iron ore trade of the state, currently sells high grade iron ore at a price decided every quarter. It has already started e-auction of chrome ore, in which it has near monopoly.

The state government representatives are scheduled to meet officials of Central Empowered Committee (CEC) this month to get a written consent about channelisation of ore trade in the state, which will compel private miners to sell their mineral though a single platform. The CEC was appointed by the Supreme Court to inquire environmental rule violations by miners in the country and is currently overseeing the iron ore e-auction process in Karnataka.

The state government wants to play safe regarding e-auction of minerals by getting the CECs approval as it does not want to face any legal hurdles, the source added. The state governments order last year to miners, on selling half of their production to local steel mills, has already drawn flak from the central government. The Centre had asked the state government to withdraw the order.