Steel Authority of India Ltd is ready to put up a Greenfield plant in Jharkhand, if access to raw material resources is to be linked to additional investment in the State.
According to Mr SK Roongta chairman of SAIL, the company would be willing to consider investments in a steel plant in the State as promised.
The rich iron ore assets of Chiria mines, estimated at 2 billion tonnes, will be a prized possession for any steel maker. And everyone wanted a piece of the pie.
SAIL claims the mines that once belonged to the erstwhile IISCO. But the State Government is refusing to renew four critical leases at Chiria as SAIL had not developed the mines. SAIL says that as IISCO was sick, no investments were possible.
The PSU is expanding capacity and is committed to its promised investment of INR 3,000 crore to INR 4,000 crore in Chiria and the nearby Gua mines.
The development would include a 4 million tonne pellet plant an ore beneficiation plant and mining development that will take automated mining from 1 million tonne a year per annum to 7 million tonne in phase one. SAIL has called for consultants for the development.
A senior steel ministry official that while the Jharkhand government has recognized SAIL’s claim as the rightful inheritor of IISCO’s mines. He said that “The ice is yet to be broken.”
(Sourced from http://www.steelguru.com/news/index/2009/09/07/MTEwNTE0/SAIL_bargains_for_raw_material_access_in_Jharkhand.html)
Monday, September 7, 2009
SAIL bargains for raw material access in Jharkhand
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