TEAM HERALD
PANJIM: The first ever e-auction of iron ore in Goa turned out to be successful with almost all stacked ore on offer in the first phase, getting sold on Monday.
Of the total 5.36 lakh metric tonnes (approximately half a million metric tonne) of ore offered, 5.35 lakh metric tonnes were secured by eight of 10 companies that bid for the ore, Chief Minister Manohar Parrikar said.
The e-auction was conducted through Metal Scrap Trade Corporation under supervision of Supreme Court-appointed monitoring committee. Approximately 15 million metric tonnes of ore would be e-auctioned as per Supreme Court directions.
Addressing a press conference soon after the e-auction, Parrikar said bids worth Rs 93.81 crore were received, which is almost 38 per cent more from the minimum bid price ~ Rs 68.14 crore. The entire amount would be deposited into escrow account till further directions from the Supreme Court.
“Of the total Rs 93.81 crore, around Rs 15 crore might come to State exchequer apart from 30 per cent export royalty, if this ore is exported,” Parrikar, who is Minister for Mines said. The ore has to be lifted by the successful bidder within 30 days from the day of e-auction.
Around 1,000 metric tonnes of ore belonging to VM Salgaoncar, lying at Mormugao Port Trust (MPT) remained unsold. The ore that was offered for e-auction was lying at five jetties and MPT.
“Barge movement is expected to commence by next month,” Chief Minister disclosed adding that in the next phase around 1.5 to 2 million metric tonnes of ore lying at mining areas would be e-auctioned. The dates for the same would be finalized within next week.
The successful bidders are ~ Sesa Sterlite Ltd, Fomento Resources Pvt Ltd, Agarwal mining and Dugra Mining companies (from Goa), Royaline Resources Ltd and Sudhar Industries Ltd (from Maharashtra), Bagadiya Brothers Pvt Ltd (from Chhattisgarh) and Kayneta Global Ltd (from Kerala).
Parrikar said the e-auction amount would strengthen the State finances. “Though there was no financial crisis, this revenue will help in improving the situation,” he claimed.
The successful bidders in addition to payment of the bid price will also have to pay State government service charge of 0.2 per cent along with service tax payable to MSTC. They are also liable to pay 10 per cent royalty on the sale price, 5 per cent non refundable VAT on sale price and royalty, Rs 20 per tonne processing fee under Goa Illegal mining storage and transportation Rules 2013, Green Cess at rate of Rs 20 per tonne. In case of export the export duty as applicable will also have to be paid.
