The Orissa, India government has demanded the introduction of a system of competitive bidding in notified mineral bearing areas of India for allocation of bulk minerals such as iron ore.

The Orissa state government called for the inclusion of a competitive bidding system in the new Mines and Minerals (Development and Regulation) Bill, 2010 which is being finalized by the Empowered Group of Ministers (EGoM) and is likely to be tabled in the winter session of the Indian parliament.

"We have demanded that bulk mineral resources like iron ore, need to be leased out on the basis of a competitive bidding system which is in conformity with international practices.

“In the petroleum sector, allocation is done through competitive global bidding and the Indian government is thinking of allocating coal blocks on the basis of competitive bidding. The same practice must be extended to iron ore,” a source said.

In addition to this, the Orissa government has sought reservation of resources for public sector undertakings and SMEs (Small and Medium Enterprises) in the mining lease areas.

The state government also pleaded for inclusion of the value addition clause in the MMDR Bill so that mineral bearing areas are benefited through value addition of minerals within their respective states.