The Orissa government is now finding it difficult to take a decision on awarding the Tangarpada chromite mines even though bids are thrown open.
The state government had invited fresh financial biddings from Jindal Stainless Ltd (JSL), Tata Steel, and VISA Steel as per the directive of the Supreme Court.
As per the financial biddings, the VISA Steel has quoted the highest prices for chrome ore followed by JSL and Tata Steel. VISA has offered Rs 7,000 per tonne of chrome ore of 48% and above grade, while JSL has quoted Rs 3,000 for it. Similarly, for chrome ore of 42-48 % grade, VISA has offered Rs 4,500 per tonne while JSL has quoted Rs 2000.
The VISA Steel has put its chrome ore requirement at 4,50,000 lakh tonne, whereas Tata Steel and Jindal Stainless Ltd (JSL) have put it at 19,87,500 tonne and 15,00,000 tonne respectively. Currently, base price of chrome having a 40-48% concentrate stands at Rs 18,000 a tone. Tangarpada mines , even though has not been explored till now, promises a deposit of 20 million tonne of ore according to an preliminary survey.
However, what makes the decision difficult is that the Supreme Court, in its order, has clearly stated that an appropriate and authorised committee of state-owned IDCOL shall consider the technical and financial bids keeping in view the best interest of the state among other things.
When it come to value addition, the proposal of the JSL appears to be more attractive. The JSL has proposed to use the entire chromite for manufacturing stainless steel in the state.
While the VISA Steel has proposed to go for only beneficiation of the ore, the
Tatas have plans to convert the ore into charge-chrome for exports.
The state government appointed 10-member tender committee headed by IDCOL managing director, Ashok Meena, is now weighing the biddings keeping in mind the apex court?s directives to avoid further litigations.
?We are now studying the bids and would be able to take a decision soon?, a member of the committee told FE. He also hinted that the committee may go for further consultation with other experts to arrive at a decision.
It was in 2003, the state-owned IDCOL had invited biddings for the exploration and exploitation of the Tangarpada chromite mines under its lease hold.
Three parties, JSL, Tata Steel and VISA Steel, had submitted their technical and financial bids for the mines. However, a tender evaluation committee of IDCOL picked up JSL on the ground that the technical bids of the other two were not acceptable.
The VISA Steel and the Tata Steel contested the state?s decision in the Orissa high court which directed for a retender while strongly reprimanding the state government for its decision.
However, JSL went to the Supreme Court against the high court order. The state government also filed a special leave petition in the Supreme Court to expunge the strictures. The apex court, while giving relief to the state government, has directed that the three parties be invited fresh financial bids for consideration keeping the best interest of the state.