With "healthy competition" and "maximum participation" from mining firms and traders in mind, the directorate of mines and geology has slashed the minimum earnest money deposit (EMD) as well as the iron ore lot size for the fourth e-auction scheduled for between August 19 and 21.
As per the latest order issued by mines director Prasanna Acharya, the minimum EMD is now 25lakh for 1,000 metric tonnes from the earlier 2.5crore for 10,000 metric tonnes. "We have reduced the EMD and lowered the iron ore lot size to allow small players, if interested, to participate in the e-auction," Acharya told STOI. Apart from 2.5crore for 10,000 tonnes, the earlier EMD also had 5crore for 20,000 tonnes and 10crore for unlimited quantity.
Under the new order, bidders have to deposit 25lakh to participate in the bidding for up to 1,000 metric tonnes of iron ore and in multiples of 25lakh for every additional quantity of 1,000 metric tones. The old order's 10crore for an unlimited quantity remains.
While the new order comes into effect forthwith, those bidders who have already deposited EMD as per the notice dated January 17, 2014, are eligible for such quantities or units of 1,000 metric tonnes per multiples of EMD amount of 25lakh. For instance those who have deposited 2.5crore shall be eligible for bidding for up to 10,000 metric tonnes or 10 units of 1,000 metric tonnes.
The mines department will e-auction 3 million tonnes of iron ore belonging to various mining companies in the fourth auction. The state government has so far earned 311crore from the three e-auctions-98crore for 0.5 million tonnes e-auctioned on February 17; 160crore for 1.2 million tonnes e-auctioned on March 5; and 53crore for 6 lakh tonnes e-auctioned on May 12.
Source: ToI