The state government has asked the state PSU Odisha Mining Corporation (OMC) to apply for prospecting licence of Sasubohumali bauxite reserve. The mine in Rayagada district has an estimated reserve of 81 million tonne bauxite.

"Since the new Mines and Minerals Development and Regulation Act, 2015, has prescribed a different set of guidelines for allocation of mines to PSUs, the government has asked the OMC to apply for the mine again according to the guidelines," OMC managing director Girish S N told TOI. The state PSU applied for the mine a year back.

Reservation of more bauxite mines in favour of the state PSUs assumes significance in the wake of acute shortage of the raw material for different companies.

The one mtpa refinery of Vedanta Aluminium Limited (VAL) at Lanjigarh is facing acute shortage of raw materials (bauxite). In December 2012, the VAL temporarily shut down its plant due to lack of raw materials. After a closure of seven months, the plant reopened in July, 2013.