Essar frontrunner to bag Odisha iron ore mine in first auction.

Essar Steel has emerged as the frontrunner to bag the first iron ore mine being auctioned in Odisha. While both company and state government officials declined to comment on record, people in the know said the steelmaker made the winning bid, beating Jindal Steel & Power, JSW Steel, Bhushan Steel and Bhushan Power & Steel.

Essar has committed to pay the state government 44.35% of the average per-tonne iron ore price derived by the Indian Bureau of Mines. Ensuring the essential raw material through a captive mine should come as a big relief to Essar Steel, a company grappling with huge debt which at the end of March 2015 stood at close to Rs 35,000 crore. It has been buying iron ore from state miner NMDC and private miners in Odisha.

'The base had been fixed at 5% over the reserve price (the highest price quote in the preliminary round), so this is a very good offer. Bidding went on till 10 at night on Wednesday and we are very happy with this first iron ore auction,' said a government official who asked not to be named. A company spokesperson didn't respond to an e-mail seeking comment until press time recently.

ET