Bhubaneswar, 04/02/2025: The Odisha government has announced the auction of ten mineral blocks, marking a significant step in unlocking the state’s mineral potential. The auction includes deposits of iron ore, manganese, and bauxite, and comes after over two years of delay, as authorities had been cautious due to fluctuations in global metal prices. Recent encouragement from the Union government appears to have prompted Odisha to proceed with the auctions.
The auction covers four iron ore blocks: Koira in Sundargarh district, and Roida-1, Putulipani, and Jalahuri in Keonjhar district. Leases for these mines expired in 2021, and they are now being reintroduced for competitive bidding. Additionally, a new iron ore block, Jhumka-Pathiriposhi West in Sundargarh, will be available for the first time.
Alongside pure iron ore deposits, the auction will feature three mixed blocks containing both iron ore and manganese: Orahuri and Bhanjikususm in Sundargarh, and Roida-D in Keonjhar. The auction also includes two virgin bauxite blocks at Karlapat in Kalahandi district and Nunapaimali in Rayagada district, offering fresh opportunities for investors in the aluminum and mining sectors.
The state government had previously been reluctant to auction these blocks due to concerns over low global metal prices and potential underpricing. There was a risk that low bids could result in long-term revenue loss for Odisha. However, Union Mines Minister G Kishan Reddy’s recent visit and push for resource monetization appears to have catalyzed the decision. The government will set reserve prices for each block based on its valuation, though actual bids may vary depending on market dynamics and investor interest.
Since the introduction of the auction system under the Mines and Minerals (Development and Regulation) Act, 2015, the mining sector has remained a cornerstone of Odisha’s economy. Iron ore, manganese, and bauxite contribute significantly to state revenues, industrial development, and employment generation. By opening these blocks for auction, Odisha aims to attract both national and international investors, stimulate industrial activity, and further strengthen its position as a mineral-rich hub in India.
The upcoming auctions are expected to revitalize investment in the state’s mining sector, encourage the development of infrastructure in mining regions, and ensure that Odisha continues to benefit from its abundant mineral resources. Observers note that while short-term prices may be low, long-term strategic exploitation of these blocks could provide sustainable revenue streams and boost the state’s industrial growth.
