The Odisha government today approved a long-term linkage (LTL) policy for bauxite, similar to the one it framed for iron ore.
The state Cabinet in its meeting held here approved amendment of the LTL policy to specify detailed guidelines for bauxite linkage, too, Chief Secretary A P Padhi told reporters.
Earlier, the state government had in September, 2014 notified a policy for long-term linkage of iron ore and chrome ore, and other minerals to the eligible state-based end user industries through Odisha Mining Corporation (OMC), he said.
Stating that the policy, which was modified in 2015 and 2016, contained detailed guidelines for linkage of iron ore and chrome ore, Padhi said the OMC, in the meantime, has commenced mining operations of bauxite.
Elaborating on the salient features of the amended LTL policy as approved by the government for linkage of bauxite, he said 70 per cent of the saleable stock of bauxite would be made available for long-term linkage, and the balance 30 per cent would be sold through national e-auction.
The decision would enable Vedanta Ltd, which has set up an alumina refinery at Lanjigarh and smelter at Jharsuguda in the state, to purchase bauxite from OMC on a long-term basis on market price through auction in a transparent manner, Padhi said.
The state government, he said, had constituted a committee to make appropriate recommendations on the nature and modalities for supply of bauxite ore by the OMC to the Lanjigarh refinery, as and when bauxite mining leases are operated by it.
The Cabinet decision has brightened prospects of paving the way for providing bauxite supply from Kodingamali mines with 85 million ton reserve in Koraput district, the chief secretary said.
In order to operationalise more blocks, create employment opportunities and facilitate investment in mineral based industries, the Cabinet also decided that more bauxite blocks would be explored through outsourcing, he said.
Disclaimer: No Business Standard Journalist was involved in creation of this content
