India’s Ministry of Mines has approved the proposal from the state government of Odisha to increase the acreage cap on captive iron ore mines that can be auctioned for captive mining by each steel company, a government official said on Tuesday, September 24.
The official said that in response to a submission from the Odisha government, the Mines Ministry will henceforth permit auction of mine leases up to a maximum of 58 square km that can be held by each steel company, up from the previous maximum acreage of 10 square km.
The Odisha government has not been able to hold an auction of any iron ore mine as the issue of increasing the acreage cap was pending with the federal government, the official said.
The biggest beneficiary of the increase in the acreage cap would be Tata Steel as previously the private steel company could not participate in auctions as it already held iron ore mining leases for captive mines spread across 49 square kms, well in excess of the previous acreage cap.
Tata Steel, which operates two integrated steel mills in the eastern India state of Odisha, will be able to participate and bid for additional iron ore mining leases following the relaxation in the acreage cap norm approved by the Ministry of Mines, the official added.