Odisha Government Auctions 11 Mining Blocks Amid Controversy

The Odisha government has commenced the auction process for 11 mineral blocks, aiming to attract investment in the mining and metals sector. This initiative features a range of resources, including bauxite, iron ore, manganese, limestone, dolomite, and aluminous laterite across five districts rich in minerals.

The Directorate of Mines and Geology has opened bids for grants of mining leases for eight blocks and composite licences for three bauxite blocks in Kalahandi, Rayagada, Sundargarh, Keonjhar, and Bargarh districts. Notable among these is the Karlapat bauxite block in Kalahandi, which has drawn significant attention from aluminium producers seeking dependable sources of raw materials.

The government is offering more unexplored bauxite-bearing blocks under the composite licence category, including Tikirimali-Budharajamali, Tikriguda-Maliguda, and Nangal-Marhimali in Rayagada. Successful bidders for these blocks will need to conduct exploration before obtaining mining rights.

The auction of the Karlapat bauxite block, however, is expected to reignite scrutiny from both industry stakeholders and environmental activists. This deposit, estimated to contain around 220 million tonnes of bauxite across more than 3,100 hectares, is adjacent to the ecologically sensitive Karlapat Wildlife Sanctuary. The block has a history of legal disputes and environmental concerns. In 2021, the Orissa High Court intervened, halting the auction due to worries about the impact of mining on local ecosystems and water sources.

In addition to the Karlapat block, the Odisha government has also listed the Gadadharpur iron ore block in Keonjhar district, along with other ferrous mineral assets such as advanced manganese and iron ore blocks in Sundargarh district. The only non-metallic block included in the current auction is the Behera-Banjipali limestone block in Bargarh.

The mineral blocks are being auctioned electronically and are classified as virgin mineral blocks, meaning they have not been previously mined. Potential bidders can access tender documents starting from June 1, with the final day to purchase these documents set for July 6. Financial and technical bids must be submitted by July 13. The overall outcome of this auction could significantly shape Odisha's mining landscape, especially concerning community rights and environmental preservation.