Bhubaneswar, March 6: The state cabinet today approved the proposal to allow Odisha Mining Corporation (OMC) Limited to sell the entire quantity of bauxite ore meant for sale through national e- auction for 2020-21 to LTL( less than truck load) supplier at the rate of Rs.1000/- per MT.
This decision of the cabinet will prevent loss of revenue to OMC Limited (a Government of Odisha PSU) as unsold bauxite ore meant for auction would have lost its quality and value because of hydroscopic nature. Besides, assured supply of bauxite would also facilitate faster industrial and economic development of the State, official sources said.
The State Government had, in February, 2018, amended long- term linkage policy specifying bauxite linkage for supply of bauxite ore by OMC Limited to the end-users in the State. In 2019, Central Government amended conversion factor for calculating Average Sale Price (ASP) of metallurgical grade bauxite. This matter has been challenged before High Court by Long-Term Linkage holder i.e. Vedanta Limited.
Considering the interim order passed by the High Court and to avoid damage to left over stock of bauxite, cabinet approved the proposal to allow OMC Limited to sell the entire quantity of bauxite ore meant for sale through national e- auction for 2020-21 at the rate of Rs.1000/- per MT with subsequent undertaking to pay the differential rate as stipulated by High Court.