BS reported that in the settlement between the Union and Jharkhand governments on the Chiria iron ore belt Steel Authority of India Ltd is not only getting a billion tonnes but is also to be entitled to stake claim on the other, unallocated, billion tonnes for its greenfield and other projects.
Whatever is left from the balance one billion tonnes after meeting SAIL’s stated requirements are to go to the private sector.
Right now only SAIL has any leases on Chiria which presently meets the requirements of SAIL’s Rourkela unit part of the need of the Durgapur unit and the need of IISCO’s steel plant.
SAIL has also already proposed to set up a new 12 million tonne steel plant in Jharkhand. This would translate into a requirement of 600 million tonne from the remaining billion tonnes. Which leaves very little for the private sector especially ArcelorMittal. Mittal signed an agreement with the Jharkhand government in 2005 to establish a mega steel unit, and was assured of supply from Chiria.
Apart from ArcelorMittal, JSW Steel, TATA Steel and Essar Steel were eyeing two leases of a total of six at Chiria which were under litigation in the Jharkhand High Court after being cancelled. However, subsequently all three companies bagged a prospecting licence for the Ankua block also in the Chiria belt. The PLs were for the part of Ankua not belonging to the SAIL lease area.
(Sourced from http://www.steelguru.com/news/index/2009/10/12/MTE1NTUz/Is_Chiria_iron_ore_settlement_favorable_to_SAIL.html)
Sunday, October 11, 2009
Is Chiria iron ore settlement favorable to SAIL
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