The Odisha government on Friday began the auction process for 11 major mineral blocks comprising bauxite, iron ore, manganese, limestone and aluminous laterite deposits to boost the state's mining output and support the expansion plans of steel, aluminium and cement industries. According to reports from Business Standard, the Directorate of Mines and Geology issued the notice inviting tenders for the grant of mining leases for eight mineral blocks and composite licences for three bauxite blocks. The mineral blocks are located in Kalahandi, Rayagada, Sundargarh, Keonjhar and Bargarh districts. The auction process will be conducted electronically, with bids to be submitted by July 13. As reported by Business Standard, the state government has fixed the tender document price at ₹5 lakh for most blocks, while the limestone block has been priced at ₹2 lakh. Tender documents will be available from June 1 and bidders can purchase them till July 6.
The auction includes two standalone bauxite mining lease blocks, one iron ore block, one iron ore and aluminous laterite block, two iron ore and manganese blocks, one manganese and dolomite block, and one limestone block. As reported by Business Standard, the Karlapat bauxite block in Kalahandi district contains around 220 million tonnes of bauxite spread over more than 3,110 hectares, while the Nunapaimali bauxite block in Rayagada district holds around 18.24 million tonnes of bauxite reserves. The Gadadharpur iron ore block in Keonjhar district is among the key assets, located in Odisha's largest iron ore-producing district. The Behera Banjipali Limestone Block in Bargarh district is expected to attract cement manufacturers looking for raw material security amid growing infrastructure and construction demand.
The Rayagada-Kalahandi belt is considered one of India's richest bauxite zones and is critical for the country's aluminium sector. As reported by Business Standard, the state has also offered three bauxite blocks under the composite licence mode - Tikirimali-Budharajamali, Tikriguda-Maliguda and Nangalmarhimali - located in Rayagada district. The Karlapat bauxite block has remained at the centre of environmental concerns for more than a decade due to its location near elephant corridors and forest areas, with earlier attempts to auction the block facing legal and environmental hurdles. The Jaldihi Tantigram iron ore and aluminous laterite block and Patamunda-B manganese and iron ore block in Sundargarh district have also been offered for mining lease, while the Barpada South iron and manganese ore block in Sundargarh district and the Kendudihi-Parulipada manganese and dolomite block in Keonjhar district are the other two major mixed mineral assets.
In a significant development for the controversial Sijimali bauxite mining project, the Centre has approved Stage-II (final) forest clearance for diversion of 4.911 hectares of forest land for construction of a 3.4 km approach road connecting to the mineral block in Odisha. The road, leased to Vedanta Group, was the centre of controversy as it led to clashes between police and agitating locals in Kantamal and Sagabari villages in Rayagada district, leaving around 70 people, including 58 police personnel injured on April 7. The Union Ministry of Environment, Forest and Climate Change (MoEFCC) has granted the statutory clearance for diversion of the forest land for construction of the road that would connect the Sijimali bauxite mine hilltop with State Highway-44 in Rayagada district. The road is considered critical for transportation of bauxite from one of the state's largest untapped mineral deposits, spread across 18 revenue villages in Kashipur block of Rayagada district and Thuamul Rampur block of neighbouring Kalahandi district.
The upcoming auction round, for the first time, includes three gold-bearing blocks. According to Business Standard, 34 mineral blocks, including 25 major mineral blocks and nine critical and strategic mineral assets, have been lined up for auction in the 2026-27 financial year. The state government had prepared 30 mineral blocks for auction in 2025-26, of which eight were auctioned, while the state had received bids for 11 out of 12 virgin mineral blocks for which bids were invited in December last year. The auction of new mineral blocks is expected to generate substantial revenue for the Odisha government through auction premiums, royalties and statutory levies while creating opportunities for downstream industries and mining-linked infrastructure development.
