In a bid to trigger greater interests among user industries, the government of the eastern Indian state of Odisha has recommended to the Indian federal government that the limit on the area an iron ore leasee can hold be increased from 10 square km to 75 square km, an Odisha government official said on Wednesday, April 4.
The official said that the relaxation is being sought to ensure greater participation of large steel mills in the auction of two iron ore blocks scheduled by the state government later this month.
Large steel mills like Tata Steel already hold a mining lease in excess of 10 square km in Odisha and a hike in the limit of the area that a lease holder can control will ensure that such large companies like Tata Steel can participate in the next round of auctions, the official added.
The relevant part of the Mines, Minerals Development and Regulation Act pertaining to rules to be followed by local governments states, “The state government may not be able to issue the letter of intent without prior approval from the central government in case the bidder holds or may hold, including the area covered under the mining lease being auctioned under the tender document, one or more mining leases covering a total area of more than 10 square km in respect of any mineral or prescribed group of associated minerals in the state of Odisha.”