Odisha Bauxite Price Dispute Sparks Political Clash
Union Minister Dharmendra Pradhan has accused former Odisha Chief Minister Naveen Patnaik of attempting to lower the official bauxite price in 2020 to benefit a private company.
Pradhan cited letters written by Patnaik to the Centre, urging dilution of the conversion factor that determines the average sale price of bauxite.
The Orissa High Court recently dismissed the private firm’s demand for 150 million tonnes of bauxite, ruling that past promises cannot override current mining laws.
Following amendments to the Mineral Concession Rules under the Modi government’s MMDR Act, the conversion factor raised bauxite’s price from ₹750 per tonne to ₹1,707 per tonne.
Pradhan argued that this revision boosted Odisha Mining Corporation’s revenue and state royalties, DMF, and NMET contributions worth thousands of crores.
He claimed Patnaik’s intervention could have cost the state ₹5,400 crore in dues from one private company.
The Centre rejected Patnaik’s request, and Pradhan framed the issue as a choice between safeguarding state revenue and granting “unwarranted concessions” to industry.
The BJD, meanwhile, has consistently criticised aspects of the central mining law, but Pradhan presented the High Court order and Patnaik’s letters as evidence of attempts to favour private buyers.
