Cabinet allows OMC to sell quality Bauxite to prevent financial loss
Bhubaneswar: Odisha Cabinet on its meeting held on Saturday has approved the proposal to allow OMC Limited to sell entire quantity of Bauxite ore meant for sale through national e-auction.
The bauxite will be sold at the rate of Rs1000 per MT with subsequent undertaking to pay the differential rate as stipulated by the High Court. The Cabinet decision will prevent loss of revenue to OMC.
It may be mentioned that 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 was challenged before High Court by Long-Term Linkage holder i.e. Vedanta Limited. Also, no bidder participated in e-auction conducted by OMC Limited on 31.08.2020 as per new revised floor price based on amendment of Average Sale Price (ASP) by Central Government.
Considering the interim order passed by the High Court and to avoid damage to left over stock of Bauxite, Limited (a Government of Odisha PSU) as unsold Bauxite ore meant for auction would have lost its quality and value because of hygroscopic nature.