The Orissa government is likely to retain Tangarpada chromite mines and develop it under the government sector while rejecting the bids of Jindal Stainless Ltd (JSL), Tata Steel and Visa Steel.
The fate of Tangarpada mines is expected to be decided on Monday with the chief minister?s office now studying the recommendations of the Industrial Development Corporation of Orissa Limited (IDCOL) tender committee. Sources in the IDCOL told FE that a strong lobby was working within the government so that it does not offer the mines to any private company for exploration and exploitation.
With the IDCOL?s ferro chrome unit in Jajpur Road making a turnaround, the state government is having a second thought on handing over the mines under its leasehold to a private company on rental. IDCOL Ferro Chrome Ltd (IFCL) is expected to post profit this fiscal. IFCL, whose present chromite mines is going to be exhausted soon, will require new mines for its operations.
It was during 2003 that IDCOL had decided to develop the chromite mines under the private sector. At that time, IDCOL was not in a position to develop the mines itself as most of its units like Kalinga Iron Works Ltd and IFCL were in red. The corporation?s attempt to offer the mines to JSL through a bidding process, however, was not successful, as the matter got entangled in litigation. It is following the apex court?s directive, that IDCOL is now considering fresh financial bids of the three companies for awarding the mines. Since the court has directed that the bids to be evaluated keeping the best interest of the state in mind, the state government is finding it difficult to finalise the issue.
