Live Mint reported that the Orissa government is preparing to start electronic auctions for iron ore in the new financial year,aiming for equitable distribution in addition to greater transparency.
A state official,said that,but this may not necessarily increase supplies of the key steel making ingredient given the 55 million tonnes production cap in the largest iron ore producing state.
Mr Deepak Kumar Mohanty director of mines in Orissa's steel and mines ministry said that"The provisions of the e-auction are under consideration;what final shape it will take we don't know yet.But the objective is to have equitable distribution of iron ore."
Mr Mohanty said that the e-auctions are likely to start after April and the government wants all the private miners along with the state run Orissa Mining Corporation Ltd to sell iron ore only via the new platform.Captive mines will not participate in these auctions.
JSW Steel Ltd,one the biggest buyers in e-auctions in Karnataka,said that supply,pricing and quality were the major issues surrounding e-auctions.
Mr Seshagiri Rao,joint managing director and group CFO of JSW Steel said that"Today,there is a suppressed supply of iron ore and e-auctions don't help.Price discovery is difficult and there are quality issues."
