The Odisha government has decided not to entertain mining tenders from companies with outstanding dues or from companies in which the same promoters are interested.

The state government has also resolved to initiate measures for the recovery of outstanding dues from the companies in accordance with the law.

“If the companies fail to clear their outstanding dues, necessary steps would be taken to recover the amount attaching the assets of the defaulting entities,” said a senior official of the steel and mines department.

An amount of Rs 2,622 crore, excluding interest, is due and outstanding on account of illegal mining. However, the government has found it tough to collect the outstanding dues as in many cases the leases of the defaulters have either expired or, as the case may be, have been terminated.

Sources said in order to debar a company that has failed to clear its dues, the state government has decided to add a new clause to this effect in the mining tender process.

This is being done in view of a Supreme Court’s direction following which the state government has added a new clause for bidders to participate in the auction of mineral blocks, officials said.

According to an order of steel and mines department, the clause reads…“No tender shall be entertained at the behest of an entity whose out-standings are due or companies in which the same promoters are interested.”

The new clause will be added to the tender document for auction of mineral blocks in future. All the interested bidders will have to meet the above conditions to participate in future mining auctions in the state.

Clearing of dues remains one of the conditions for eligibility of participation in the future auction of mineral blocks in the state.

It has been communicated by the government to all field-level functionaries for necessary action and any deviation would be dealt with strict disciplinary action, sources said.

In its order on August 14 this year, the apex court had issued a direction to the state to ensure that the terms and conditions of the tender of a mining auction must clarify that no tender would be entertained at the behest of an entity against which out-standings are due or companies in which the same promoters are interested.