Odisha, India: State cabinet permits OMC to sell entire Bauxite
On 6th March 2021, the Odisha cabinet held a meeting, where it approved the proposal of the state government to authorize Odisha Mining Corporation (OMC) to sell the entire quantity of bauxite ore meant for sale through national e-auction for 2020-21 at the rate of INR 1,000 per tonne.
As decided, the bauxite will be sold at the rate of INR 1000 per tonne with a subsequent undertaking to pay the differential rate as stipulated by the High Court. This decision by the cabinet will prevent loss of revenue to OMC.
In February 2018, the government amended the Long Term Linkage (LTL) policy for the supply of bauxite ore by the OMC to the end-users in the State.
However, in 2019, the Centre amended the conversion factor for calculating the average sale price (ASP) of metallurgical grade bauxite.
The decision has been challenged before the High Court by LTL holder Vedanta Ltd. Furthermore, no bidder participated in an e-auction conducted by the OMC on 31st August’20 as per the new revised floor price based on the amendment of ASP by the Centre.
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