State earns Rs 620 cr by auctioning ore

PANJIM: State government has managed to earn Rs 620 crore through e-auction of five million tons of ore, since February this year. Around 15 million tons of ore, lying at jetties, mining sites and Mormugao Port Trust (MPT) has been identified for e-auction from which government is expecting to generate revenue of Rs 1500-odd crores by December end.

The State, through Metal Scrap Trading Corporation (MSTC), auctioned five million tones of ore through four different e-auctions conducted on February 17, March 5, May 12 and August 19. The total value realized is Rs 620 crore approximately, which as per the judgment of the Supreme Court would go to the State treasury.
The fourth e-auction conducted on August 19, 20 and 21 sold three million tonnes of ore. However the falling international prices could not fetch good value to the ore and hence it managed to get only Rs 287 crore.
For maximum participation in the e-auction by the mining companies and traders the department has lowered the earnest money deposit from Rs 25 crore to Rs 25 lakh. Chief Minister Manohar Parrikar was on record saying that due to the fall in international market prices of ore, government was finding it difficult to get good value for the ore.
The fifth e-auction is planned on September 2 where tentatively total 2.18 million tonnes of ore would be sold. 

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