Bhubaneswar, May 15: The Odisha government today decided to introduce e-tendering system for engagement of transport agents and fixation of freight charges to ferry minerals to ensure fair trade practices.

The government has lately been taking many steps to create a conducive atmosphere for business in the mining sector to open closed mines to generate revenue.

Last month, it approved the lease extension of 26 mines under the new Mines and Minerals (Development & Regulation) Amendment Act, hoping to generate Rs 2,000 crore as revenue from execution of the supplementary lease deeds.

The latest move came in the wake of allegations that some local truckers and transport agencies were demanding exorbitant charges and obstructing the movement of trucks belonging to mine owners and end-user industries. The collectors and police superintendents of mineral-bearing districts were directed today to deal sternly with these elements.

The state has more than 500 iron ore, manganese, bauxite and other mines, of which, around two-thirds were closed on the recommendations of the Justice M.B. Shah Commission, which probed into the multi-crore mining scam.

In May last year, the Supreme Court had ordered closure of 26 mines in Odisha that were operating under the deemed lease extension clause of the Mineral Concession Rules (MCR), 1960. This only made the situation worse.

Finance department sources admitted to the downward plunge in revenue generation but refused to quantify it. However, a clear indication of the situation is the fact that the state budget for 2015-16 projected a deficit of more than Rs 10,000 crore.

The Odisha government has held several meetings with the mine lease holders and many of them have executed supplementary lease deeds. The government hopes to generate around Rs 2,000 crore from additional lease deeds.

The decision to introduce the e-tendering system was taken at a meeting chaired by chief secretary Gokul Chandra Pati. It was attended by the home secretary, steel and mines secretary, collectors and police superintendents of Sundargarh, Keojhar and Jajpur, and representatives of mining lease-holders and end-user industries.

Owners of mines in these three districts alleged that the local transport agencies and truckers were not allowing the Odisha-based industries to transport minerals. Also, trucks carrying ore for industries based outside the state were being obstructed.

The Odisha Mining Corporation will develop the module for the e-tendering system. After it is ready, all the transport agencies and truckers will have to register themselves under the system. "Fair transportation charges will be fixed through the e-tendering system and those charging more will be punished," said director of mines Deepak Kumar Mohanty.