Essar Steel has emerged as the successful bidder in the first iron ore block auctioned by the Odisha government, an official statement said on Friday.
The company has bagged the Ghorhaburhani - Sagasahi iron ore block upstaging several strong contenders. Tata Steel, JSPL, JSW Steel, Bhushan Steel Ltd, Bhushan Power & Steel Ltd and Rashtriya Ispat & Nigam Ltd (RINL) had also submitted technical bids to grab the coal block.
"We are pleased to inform that Essar Steel India Ltd submitted the highest final price offer of 44. 35 percent and is hereby declared the preferred bidder, " said a notification of Odisha's director of mines.
The iron ore block with estimated reserves of over 99 million tonnes (MT) is at G2 exploration stage and located in Koira sector in Sundargarh district.
The state government had reserved the block for an integrated steel plant as end use. The government would issue a letter of intent to the successful bidder upon payment of first installment of the upfront payment.
Sources said, the mineral concession area of the block is spread over 139. 16 hectares (ha) including 20. 88 ha forest land, 110. 69 ha government land and the balance 7. 58 ha private land.