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Bhubaneswar: Six months after giving in-principle approval for the formation of Odisha Mineral Exploration Corporation Limited (OMECL), the State government on Tuesday said it will constitute the dedicated agency for mineral exploration in Odisha soon.
Steel and Mines principal secretary RK Sharma informed this on the sidelines of the State Geological Programming Board meeting here.
“The State government has already decided in principle to set up Odisha Mineral Exploration Corporation. The government is in consultation with several other concerned departments to finalise the modalities. We hope to complete the process soon,” Sharma stated.
The official replied in negative when asked the State government had set a timeline for the formation of the Corporation taking into consideration the e-auction of seven mines of the state, which are required to meet G-3 level of exploration, in August.
“It is a time taking process. The cabinet memorandum has been prepared and forwarded to Finance department. After due consultation, we will form it very soon,” he maintained.
The seven mines lined up to go under the hammer include iron ore, manganese and a bauxite mines in Koraput district. Since all these mines belong to G-3 level of exploration, the Centre has asked the State to upgrade them to G-2 level before going in for auction.
According to auction rules, the State government can issue mining lease directly under G-2 level of exploration, which can help the successful bidder to start production immediately. Under G-3 level, the government first issues prospecting licence through which the lessee can only conduct survey of the block and then apply for mining lease.
In January, the State government had decided that OMECL will be formed in accordance with the new Odisha Mineral Exploration policy-2015 approved by the State government in July last year, with the objective of realising the mining sector's potential though scientific exploration of mineral resources.
Officials in the know of the development said the corporation would be a subsidiary of the Odisha Mining Corporation (OMC) and it could extend services of scientific exploration and analysis to other States and agencies on payment.
Available data shows Odisha has around 700 sq km of virgin and freehold area that is supposed to have deposits of asbestos, bauxite, china clay, cobalt, chromite, fire clay, graphite, limestone, manganese, mineral sand, nickel, platinum group materials (PGM), tin ore and vanadium, apart from coal and iron ore.
