BHUBANESWAR: Industries in the State are beginning to get apprehensive over the focus on competitive bidding for mineral licences in the proposed Mines and Minerals (Development and regulation) Bill 2011, that is all set to replace the existing MMDR Act 1957. The move would spell doom for industries, who are waiting for grant of mineral licences, even after making substantial investment in projects in the State. It would also deter other players which are planning to come into Orissa for different mineral resource-based industrial projects, they have warned. The issue held centrestage at the Mineral Junction conclave organised by the CII Orissa Chapter here on Friday where industrial houses voiced their concerns and wanted a clear-cut view and policy of the Government. As per the present system, industries who have put in at least 25 percent of the total investment in the project would be granted mining leases. Many industries have already fulfilled the commitment but are still to be accorded mines. In the situation, the introduction of competitive bidding system would deal a body blow to them, the industries alleged. “The development has caused panic among the industrial units. We have spent over 200 percent of our original project cost but are yet to be provided with mineral deposit linkage. The whole issue of competitive bidding would affect industrial development in a big way”, President and CEO of Vedanta Aluminium Limited Mukesh Kumar said. The industries are now raising their voice against the move at both the Central and State level. The State Government should clarify its stance on the issue of competitive bidding, DS Arora of Arcelor Mittal said at the conclave. The State Government, though, seems to be trying hard to tread a safe path. “While we have to abide by the MMDR Act, the Bill give the State Government the flexibility to fix parameters on competitive bidding process. It is at a very early stage now but if it is introduced, bidding process would be held in the most transparent manner”, Secretary Steel and Mines Manoj Ahuja said.
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