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Goa receives 28 bids for four iron ore mining blocks up for auction
In 2010-11, a study by the National Council for Applied Economic Research estimated that the industry contributed roughly around ₹6,500 crore, or 16.94%, to the state’s GDP
The Goa government has received 28 bids to acquire leases of four iron ore blocks that were put up for auction, director of mines and geology Suresh Shanbhogue said on Tuesday.
The bids were received after the last date of submission on November 28.
The technical bids submitted by the mining companies were opened in the presence of the bidders and their representatives on Tuesday and will be evaluated till December 14, after which the bidding will begin.
“We opened the technical bids, checked how many physical submissions we have received, and whether they have done online submission or not. The physical submission number and the online submission number should match. We did this in the presence of the bidders. We have received 28 bids both online and offline,” Shanbhogue said.
“The technical documents will now be scrutinised to check whether they have net worth certificate, etc., and that process has begun,” he said.
Of the four blocks up for auction, three are in North Goa – Monte de Sirigao, Sirigao-Mayem and Bicholim, previously owned by M/s Rajaram Bandekar, Chowgule & Co and Sesa Mining Corporation – while the fourth is in South Goa’s Kalay, previously owned by NS Narvekar.
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“Block one has received five bids, seven for block two, 10 for block three and six for block four. Ten companies have participated in the bidding, some of them expressing interest for more than one block,” the director said.
“The auction process is expected to conclude by December 21,” he added.
Despite the auctions, mining isn’t expected to immediately resume as the tender document specifies that a successful bidder will have to obtain fresh forest, wildlife and environmental clearances, among more than 15 clearances required to resume mining.
The State has entered into a MoU with the Mineral Exploration Consultancy Limited (MECL), a PSU, to provide geological reports for the auctions. The state has also engaged the services of SBICAP Securities Limited for transaction advisory services to prepare bid documents and conduct the process. The state has also engaged the MSTC auction platform, while a high-powered committee is monitoring the auction.
In 2010-11, a study by the National Council for Applied Economic Research (NCAER), which documented the economic growth and role of the mining sector in the Goan economy, estimated that the industry contributed roughly around ₹6,500 crore, or 16.94%, to the state’s GDP and employed 19,000 employees directly out of a total labour force of 582,000 in Goa.
