The Indian government has approved the auction of five iron ore blocks, four in the eastern state of Odisha and another in Jharkhand, by the respective local governments by mid-March this year, Indian government officials said on Wednesday, January 24.
The officials said that, while the government of Odisha is in the process of issuing a "notice inviting tenders" for the four blocks, the Jharkhand government is expected to commence the process within the next couple of weeks.
Significantly, the federal Mines Ministry is considering the option of getting the local governments to float special purpose vehicles (SPVs) and having the proposed iron ore blocks transferred to the SPV, before the blocks are put up for bids.
The idea is that the SPV could apply and secure all mandatory approvals from various state and federal government agencies before the auctions, and the same could be transferred to the successful bidder once the auction process is completed, the official said.
This will enable successful bidders to cut down on delays in securing various approvals and reduce the gestation time in commencing the mines secured through the bidding process, they added.