Thu, Jan05, 2012
Hazira: The $15 billion Essar group will become one of the first steel mills in India to use low-grade iron ore fines to make steel at the Essar Steel Hazira plant whose capacity has now been expanded to 10 million tonnes per annum from seven million tonnes per annum.
Prashant Ruia, group CEO at Essar group said, “Most of our raw material will be low-grade fines which is much cheaper. A bulk of our iron ore needs have been secured through off-take agreements with key players such as NMDC and captive mines in Jharkhand and Chhatisgarh. In addition, the iron ore benefication plants have been set up by the company to facilitate usage of low-grade iron ore fines abundantly available in the country.”
So far, iron ore fines have either been exported or dumped along with overburden, as Indian steelmakers have locked the technology to process this inferior grade raw material into iron.
Essar Steel has licensed the technology for iron ore benification from Sweden-based Metso and for pellets it has sourced technology from Germany-based Lurgi. The company refused to comment on the price it has paid for acquiring the technology. As per the current market prices using iron ore fines will help the company to reduce cost by 60 per cent, a senior company official said Ruia.
For its energy requirements, Essar has long-term power purchase agreements with Essar Power and will soon have access to cheaper coal based power from its captive plants too.
Essar is also producing ore pellets through benefication of iron ore. Every million tonnes of steel requires 1.4 million tonne pellet for manufacturing. Essar Steel will have 20 million tonne pellet making capacity operational once its Orissa benefication plant goes on stream in two equal phases starting from March 2012. The final six million tonnes at Orissa will be operational in a year’s time.
(sourced MyDigaltalFC)
Showing posts with label Jharkhand. Show all posts
Showing posts with label Jharkhand. Show all posts
Thursday, January 5, 2012
Jharkhand gets back four coal blocks
Thursday, 05 Jan 2012
The Telegraph reported that Mr Sriprakash Jaiswal India’s coal minister has kept his promise to friend and Jharkhand chief minister Mr Arjun Munda with his ministry taking an in principle decision to re allocate four out of five coal blocks taken away in May.
The blocks three of which were with National Thermal Power Corporation in Karanpura one with Jharkhand State Electricity Board in Banhardih and another that was jointly allocated to Damodar Valley Corporation and Jharkhand government undertaking Tenughat Vidyut Nigam Limited in Gondulpara were taken away after the companies overshot their deadlines to develop them.
The blocks which were allocated between 2006 and 2007, translate into a combined reserve of 1,836 million tonnes. The companies had blamed the delay in developing them on Naxalites slow land acquisition and forest clearances.
Senior official in Mr Jaiswal office told The Telegraph that “Except the JSEB block in Banhardih all other blocks have been cleared for in principle re-allocation under strict conditions. They will have to deposit a stipulated bank guarantee and undertake that they will develop the mine within 24 months. This can be extended by another 12 months if their reasons are satisfactory. If there is still delay, they will not only lose the block, but also the guarantee.”
He added that the Banhardih block also might be re-allocated to JSEB soon as a policy decision was taken on this in a meeting chaired by additional secretary Mr Zohra Chatterji more than a month back.
Mr Munda along with his deputy Mr Hemant Soren had met Mr Jaiswal in July to protest against the coal blocks being taken away. They pitched for a review on grounds that Banhardih was awarded through the state dispensation route and all the blocks were critical to ensure power to a new state trying to attract industry. Then, Mr Jaiswal had promised on camera to help his dost Mr Mundaji.
(Sourced from telegraphindia.com)
The Telegraph reported that Mr Sriprakash Jaiswal India’s coal minister has kept his promise to friend and Jharkhand chief minister Mr Arjun Munda with his ministry taking an in principle decision to re allocate four out of five coal blocks taken away in May.
The blocks three of which were with National Thermal Power Corporation in Karanpura one with Jharkhand State Electricity Board in Banhardih and another that was jointly allocated to Damodar Valley Corporation and Jharkhand government undertaking Tenughat Vidyut Nigam Limited in Gondulpara were taken away after the companies overshot their deadlines to develop them.
The blocks which were allocated between 2006 and 2007, translate into a combined reserve of 1,836 million tonnes. The companies had blamed the delay in developing them on Naxalites slow land acquisition and forest clearances.
Senior official in Mr Jaiswal office told The Telegraph that “Except the JSEB block in Banhardih all other blocks have been cleared for in principle re-allocation under strict conditions. They will have to deposit a stipulated bank guarantee and undertake that they will develop the mine within 24 months. This can be extended by another 12 months if their reasons are satisfactory. If there is still delay, they will not only lose the block, but also the guarantee.”
He added that the Banhardih block also might be re-allocated to JSEB soon as a policy decision was taken on this in a meeting chaired by additional secretary Mr Zohra Chatterji more than a month back.
Mr Munda along with his deputy Mr Hemant Soren had met Mr Jaiswal in July to protest against the coal blocks being taken away. They pitched for a review on grounds that Banhardih was awarded through the state dispensation route and all the blocks were critical to ensure power to a new state trying to attract industry. Then, Mr Jaiswal had promised on camera to help his dost Mr Mundaji.
(Sourced from telegraphindia.com)
Monday, November 14, 2011
Jharkhand and centre in coal linkage talk
Monday, 14 Nov 2011
A daylong visit to Jharkhand by union coal secretary Mr Alok Perti proved to be productive for both the state government and the coal ministry.
While the state government sought restoration of coal linkage for the small and medium enterprises, the coal ministry demanded cooperation of the state government in speedy clearance of land for expansion of mining activities in the state.
Mr Perti visited the headquarters of Central Coalfields Ltd at Darbhanga House along with Coal India Ltd chairman Mr NC Jha to review the progress of ongoing and new projects.
While meeting CCL officials, Mr Perti made it clear that the ministry was particular about achievement of targets. He is learnt to have directed the area chief general managers to set daily production target of coal and achieve the targets on a daily basis.
He has also indicated about visiting Jharkhand shortly to review if the directions were being followed.
While discussing action report of each area, aimed at meeting annual target of coal production of 51.5 million tonnes, coal dispatch of 56 million tonnes, over burden removal of 63 million cubic meters and other issues, he said the targets should not remain confined to papers.
Later in the day, he met chief secretary Mr SK Choudhary to discuss various issues related to pending mining projects of the ministry. He said unless the state government is keen about granting clearances on forest, land and environment and assure maintenance of law and order, CCL cannot expand its mining operations.
Responding to the issues raised by the coal secretary, Mr Choudhary assured cooperation and informed that measures to check Maoist disturbance in the mining areas is being taken up joint operations of the state and central paramilitary forces. He said that "We are expected to provide a suitable law and order situation and the issue is being dealt jointly.”
During the meeting, he raised the issue of discontinuance of coal linkage to SMEs causing troubles to the industrial sector. He said that "We expect restoration of the linkage shortly.”
(Sourced from TOI)
A daylong visit to Jharkhand by union coal secretary Mr Alok Perti proved to be productive for both the state government and the coal ministry.
While the state government sought restoration of coal linkage for the small and medium enterprises, the coal ministry demanded cooperation of the state government in speedy clearance of land for expansion of mining activities in the state.
Mr Perti visited the headquarters of Central Coalfields Ltd at Darbhanga House along with Coal India Ltd chairman Mr NC Jha to review the progress of ongoing and new projects.
While meeting CCL officials, Mr Perti made it clear that the ministry was particular about achievement of targets. He is learnt to have directed the area chief general managers to set daily production target of coal and achieve the targets on a daily basis.
He has also indicated about visiting Jharkhand shortly to review if the directions were being followed.
While discussing action report of each area, aimed at meeting annual target of coal production of 51.5 million tonnes, coal dispatch of 56 million tonnes, over burden removal of 63 million cubic meters and other issues, he said the targets should not remain confined to papers.
Later in the day, he met chief secretary Mr SK Choudhary to discuss various issues related to pending mining projects of the ministry. He said unless the state government is keen about granting clearances on forest, land and environment and assure maintenance of law and order, CCL cannot expand its mining operations.
Responding to the issues raised by the coal secretary, Mr Choudhary assured cooperation and informed that measures to check Maoist disturbance in the mining areas is being taken up joint operations of the state and central paramilitary forces. He said that "We are expected to provide a suitable law and order situation and the issue is being dealt jointly.”
During the meeting, he raised the issue of discontinuance of coal linkage to SMEs causing troubles to the industrial sector. He said that "We expect restoration of the linkage shortly.”
(Sourced from TOI)
Wednesday, November 2, 2011
CIL CCL stops coal linkage supply to small units
Wednesday, 02 Nov 2011
TNN reported that embarrassed over irregularities in coal supply to the alleged fake small industries through linkages that are under the CBI scanner, Coal India Limited’s Central Coalfield Limited has stopped the supply to such companies within and outside Jharkhand.
Following the directives issued by the CCL headquarters in Ranchi, four collieries in Ramgarh district have stopped supply to small industries.
CCL GM said the coal linkage delivery was stopped on Sunday to small industries which are under the scanner of the CBI following a directive issued by CMD of CCL Mr RK Saha.
The GM said that around 60 coal carrying trucks were returned empty on October 30th 2011. He added that "We have issued office order to all officials not to deliver coal to of private sector small industries from the mines."
(sourced from TimesofIndia)
TNN reported that embarrassed over irregularities in coal supply to the alleged fake small industries through linkages that are under the CBI scanner, Coal India Limited’s Central Coalfield Limited has stopped the supply to such companies within and outside Jharkhand.
Following the directives issued by the CCL headquarters in Ranchi, four collieries in Ramgarh district have stopped supply to small industries.
CCL GM said the coal linkage delivery was stopped on Sunday to small industries which are under the scanner of the CBI following a directive issued by CMD of CCL Mr RK Saha.
The GM said that around 60 coal carrying trucks were returned empty on October 30th 2011. He added that "We have issued office order to all officials not to deliver coal to of private sector small industries from the mines."
(sourced from TimesofIndia)
Coal ministry to restore 5 captive coal block allotments to NTPC
Wednesday, 02 Nov 2011
BS reported that in a major development for Maharatna power generator NTPC Limited, the coal ministry is set to restore its five captive coal block allotments in a week.
The blocks were cancelled earlier this year on grounds of delays.
The move would boost the plans of the INR 57,000 crore company to more than double generation capacity to 75,000 MW by ramping up in house coal production to 47 million tonnes per annum, one fourth of its coal requirement over the next five years.
The decision has been prompted by a mix of factors including an urgent need to bridge the burgeoning gap in coal demand and supply, firm commitment of rapid development of the blocks from NTPC, the huge investments already made by the company on power projects linked to the blocks, pressure from the power ministry for restoring the blocks and the recent coal supply crisis.
Mr Sriprakash Jaiswal coal minister told Business Standard that "NTPC has assured us of quicker development of blocks now. Also, there have been many requests from the power minister. We are likely to give the blocks back as soon as the report of the review committee is submitted in four to five days." He also added NTPC, being a government company, deserves preference in this matter.
An intra ministerial review committee headed by coal secretary Mr Alok Perti has been reviewing the ministry's decision, taken in May 2011, to cancel 14 coal blocks and one lignite block awarded to six public sector undertakings, including NTPC.
Apart from rejuvenating the company’s fuel securing strategy, the decision would also set at rest months of uncertainty over the progress of the government’s captive coal production plan, as NTPC's blocks account for a major chunk of such reserves allotted so far.
The five cancelled blocks Chatti Bariatu, Chatti Bariatu (South), Kerandari, Brahmani and Chichiro Patsimal have combined geological reserves exceeding 3 billion tonne. The first three blocks are meant to supply fuel to two power plants of 1,320 MW capacity each Barh in Bihar and Tanda stage II in Uttar Pradesh. Both the projects, when commissioned, would require over 10 million tonnes of coal annually. The other two blocks are meant to feed the expansion of Kahalgaon power project in Bihar and Farakka in West Bengal.
Waiting For Approval
Source - NTPC
An NTPC official informed that almost a half of the INR 6,600 crore investment in Barh has already been made. He added that "Also, Tanda stage II is in advanced stage of progress and the first unit is expected to be commissioned in early 2012-13."
NTPC was awarded a total of eight coal blocks over past seven years with reserves of around 5 billion tonnes. All these were expected to come into production between April 2008 and March 2012. However, not a single block has commenced production so far.
The review exercise could be extended to the cancelled blocks of Damodar Valley Corporation, another PSU under the power ministry, and Jharkhand State Electricity Board. The coal ministry had cancelled DVC’s Saharpur Jamarpani block in Jharkhand and Gondulpara coal block in the same state, jointly allocated to DVC and Tenughat Vidyut Nigam.
(sourced from Business-Standard)
BS reported that in a major development for Maharatna power generator NTPC Limited, the coal ministry is set to restore its five captive coal block allotments in a week.
The blocks were cancelled earlier this year on grounds of delays.
The move would boost the plans of the INR 57,000 crore company to more than double generation capacity to 75,000 MW by ramping up in house coal production to 47 million tonnes per annum, one fourth of its coal requirement over the next five years.
The decision has been prompted by a mix of factors including an urgent need to bridge the burgeoning gap in coal demand and supply, firm commitment of rapid development of the blocks from NTPC, the huge investments already made by the company on power projects linked to the blocks, pressure from the power ministry for restoring the blocks and the recent coal supply crisis.
Mr Sriprakash Jaiswal coal minister told Business Standard that "NTPC has assured us of quicker development of blocks now. Also, there have been many requests from the power minister. We are likely to give the blocks back as soon as the report of the review committee is submitted in four to five days." He also added NTPC, being a government company, deserves preference in this matter.
An intra ministerial review committee headed by coal secretary Mr Alok Perti has been reviewing the ministry's decision, taken in May 2011, to cancel 14 coal blocks and one lignite block awarded to six public sector undertakings, including NTPC.
Apart from rejuvenating the company’s fuel securing strategy, the decision would also set at rest months of uncertainty over the progress of the government’s captive coal production plan, as NTPC's blocks account for a major chunk of such reserves allotted so far.
The five cancelled blocks Chatti Bariatu, Chatti Bariatu (South), Kerandari, Brahmani and Chichiro Patsimal have combined geological reserves exceeding 3 billion tonne. The first three blocks are meant to supply fuel to two power plants of 1,320 MW capacity each Barh in Bihar and Tanda stage II in Uttar Pradesh. Both the projects, when commissioned, would require over 10 million tonnes of coal annually. The other two blocks are meant to feed the expansion of Kahalgaon power project in Bihar and Farakka in West Bengal.
Waiting For Approval
| Coal block | Date of allocation | Target date | Status of progress |
| Pakri Barwadih | Oct '04 | Apr '08 | Environmental nod granted, awaited, order for coal handling plant awarded |
| Chatti Bariatu | Jan '06 | Jul '09 | Environmental nod granted, forest clearance awaited |
| Kerandari | Jan '06 | Jul '09 | Environmental nod granted, forest clearance awaited |
| Talaipalli | Jan '06 | Mar '12 | Environmental nod and forest clearance awaited |
| Dulanga | Jan '06 | Sep '11 | Environmental nod and forest clearance awaited |
| Brahman & Chichiro Patsimal | Jan '06 | Oct '11 | JV company with CIL incorporated in April 2010, exploration underway |
| Chatti Bariatu (South) | Jul '07 | Jan '11 | MoU with Mineral Exploration Corp being finalized for exploration, application for land acquisition being submitted |
Source - NTPC
An NTPC official informed that almost a half of the INR 6,600 crore investment in Barh has already been made. He added that "Also, Tanda stage II is in advanced stage of progress and the first unit is expected to be commissioned in early 2012-13."
NTPC was awarded a total of eight coal blocks over past seven years with reserves of around 5 billion tonnes. All these were expected to come into production between April 2008 and March 2012. However, not a single block has commenced production so far.
The review exercise could be extended to the cancelled blocks of Damodar Valley Corporation, another PSU under the power ministry, and Jharkhand State Electricity Board. The coal ministry had cancelled DVC’s Saharpur Jamarpani block in Jharkhand and Gondulpara coal block in the same state, jointly allocated to DVC and Tenughat Vidyut Nigam.
(sourced from Business-Standard)
Saturday, October 29, 2011
Jindals' Salboni project faces iron ore crisis
Sat,Oct29,2011 |TNN
KOLKATA: Supply crunch of iron ore has cast a shadow on Bengal's showpiece project - Sajjan Jindal's integrated steel and power plant at Salboni in West Midnapore.
JSW officials have informally requested the state to help them procure iron ore from National Mineral Development Corporation's mines in Orissa and Jharkhand. JSW Bengal got three coal blocks in state dispensation route, Kulti, Ichapur and Sitarampur in Raniganj belt and the estimated combined reserve is over 600 million tonne.
Incidentally, the project is also facing land hurdle as mutation for the entire land (4,334 acres) is still pending. The company officials would meet state industries minister Partha Chatterjee and West Bengal Industrial Development Corporation (WBIDC) managing director Nandini Chakraborty on Saturday where the issue is likely to be discussed.
However, the only silver lining is that NMDC has not ruled out the possibility of limited iron ore linkage for the project. JSW Group is now planning to set up a 3 million tonne steel plant and a 300 MW power plant with an investment of Rs 20,000 crore in the first phase. NMDC chairman and MD, Rana Som, told TOI that it has got a couple of mines in Orissa where the production is not fully tied up. It has also got prospecting license for a big mine in Jharkhand. "There is no request so far from JSW for its Bengal project. We are supplying iron ore to other JSW projects," he added.
It's not only the JSW Group alone. Several other steel firms across the country have been facing iron ore shortage for the last few months. The Vijaynagar plant of JSW Steel is running at less than 50% of installed capacity of 10 million tonne.
Incidentally, WBIDC had sought clarification from JSW Bengal Steel regarding issues relating to the size of Salboni project for sourcing iron ore in September. JSW Group had given a reply to that letter
a couple of days ago. There were indications that WBIDC would start processing necessary clearances for Salboni project once it receives the clarifications. However, sources added that some grey areas still remained even after the reply.
JSW made this request to the state after the WBIDC asked it to specify how it would source iron ore and location of handling and
whether it is planning to set up any pallet plant in Bengal. It has also raised question about the location of the power plant proposed by JSW Bengal Steel. "The power plant was originally planned in Andal. As per the the approved feasibility report, the capacity of the Salboni project would be 6 million ton. The Expert Committee of Steel of the state government approved this quantity earlier," a source said.
(sourced TOI)
KOLKATA: Supply crunch of iron ore has cast a shadow on Bengal's showpiece project - Sajjan Jindal's integrated steel and power plant at Salboni in West Midnapore.
JSW officials have informally requested the state to help them procure iron ore from National Mineral Development Corporation's mines in Orissa and Jharkhand. JSW Bengal got three coal blocks in state dispensation route, Kulti, Ichapur and Sitarampur in Raniganj belt and the estimated combined reserve is over 600 million tonne.
Incidentally, the project is also facing land hurdle as mutation for the entire land (4,334 acres) is still pending. The company officials would meet state industries minister Partha Chatterjee and West Bengal Industrial Development Corporation (WBIDC) managing director Nandini Chakraborty on Saturday where the issue is likely to be discussed.
However, the only silver lining is that NMDC has not ruled out the possibility of limited iron ore linkage for the project. JSW Group is now planning to set up a 3 million tonne steel plant and a 300 MW power plant with an investment of Rs 20,000 crore in the first phase. NMDC chairman and MD, Rana Som, told TOI that it has got a couple of mines in Orissa where the production is not fully tied up. It has also got prospecting license for a big mine in Jharkhand. "There is no request so far from JSW for its Bengal project. We are supplying iron ore to other JSW projects," he added.
It's not only the JSW Group alone. Several other steel firms across the country have been facing iron ore shortage for the last few months. The Vijaynagar plant of JSW Steel is running at less than 50% of installed capacity of 10 million tonne.
Incidentally, WBIDC had sought clarification from JSW Bengal Steel regarding issues relating to the size of Salboni project for sourcing iron ore in September. JSW Group had given a reply to that letter
a couple of days ago. There were indications that WBIDC would start processing necessary clearances for Salboni project once it receives the clarifications. However, sources added that some grey areas still remained even after the reply.
JSW made this request to the state after the WBIDC asked it to specify how it would source iron ore and location of handling and
whether it is planning to set up any pallet plant in Bengal. It has also raised question about the location of the power plant proposed by JSW Bengal Steel. "The power plant was originally planned in Andal. As per the the approved feasibility report, the capacity of the Salboni project would be 6 million ton. The Expert Committee of Steel of the state government approved this quantity earlier," a source said.
(sourced TOI)
Saturday, October 22, 2011
India to rush teams to CIL mines for faster evacuation of coal
Sat, 22 Oct 2011
It is reported that the government will rush teams to Coal India collieries for faster evacuation of the dry fuel to overcome the crisis amid severe coal shortages disrupting power supply in different parts of the country.
A source in the Coal Ministry said "The Coal Ministry has been asked to rush teams to various collieries including Magad in Jharkhand and Kania, Basundra and Kulda in Orissa to ensure faster evacuation of the dry fuel and submit a report by November 10."
The decision was taken in a meeting last evening, chaired by Cabinet Secretary Mr Ajit Kumar Seth and attended by senior officials from various ministries including coal and power amid acute coal shortages impacting power generation.
The pithead stock lying idle at various CIL collieries is about 55 million tonnes which has not been lifted due to various problems including a shortage of railway rakes.
Sources said the teams will comprise officials from the coal, power and railway ministries and state-run Coal India.
Apart from this, sources said, it was also decided in the meeting to constitute separate panels comprising officials from various ministries including environment, power and railways besides the Planning Commission to sort out issues with state governments regarding land acquisition among other things for expansion projects.
Meanwhile, Mr Manmohan Singh Prime Minister is also likely to conduct a review of the supply situation next month. The Coal Ministry made it clear this week that it cannot supply domestic fuel to new projects which will have to depend on imported coal.
Power projects having a total capacity of 80,000 MW are under construction in the country, but coal linkages for upcoming plants having a combined capacity of 40,000 MW are yet to be obtained.
source Profit.ndtv
It is reported that the government will rush teams to Coal India collieries for faster evacuation of the dry fuel to overcome the crisis amid severe coal shortages disrupting power supply in different parts of the country.
A source in the Coal Ministry said "The Coal Ministry has been asked to rush teams to various collieries including Magad in Jharkhand and Kania, Basundra and Kulda in Orissa to ensure faster evacuation of the dry fuel and submit a report by November 10."
The decision was taken in a meeting last evening, chaired by Cabinet Secretary Mr Ajit Kumar Seth and attended by senior officials from various ministries including coal and power amid acute coal shortages impacting power generation.
The pithead stock lying idle at various CIL collieries is about 55 million tonnes which has not been lifted due to various problems including a shortage of railway rakes.
Sources said the teams will comprise officials from the coal, power and railway ministries and state-run Coal India.
Apart from this, sources said, it was also decided in the meeting to constitute separate panels comprising officials from various ministries including environment, power and railways besides the Planning Commission to sort out issues with state governments regarding land acquisition among other things for expansion projects.
Meanwhile, Mr Manmohan Singh Prime Minister is also likely to conduct a review of the supply situation next month. The Coal Ministry made it clear this week that it cannot supply domestic fuel to new projects which will have to depend on imported coal.
Power projects having a total capacity of 80,000 MW are under construction in the country, but coal linkages for upcoming plants having a combined capacity of 40,000 MW are yet to be obtained.
source Profit.ndtv
Thursday, October 20, 2011
Jharkhand ore cheaper in Karnataka than in E Auction
Thursday, 20 Oct 2011
BL reported that the high prices of iron ore routed through E auctions and issues linked to iron content in dispatches are forcing steel and sponge iron makers in Karnataka to look to Jharkhand and Orissa.
Mr Dinesh Kumar Singhi MD of Karnataka based BMM Ispat told Business Line that the base price of INR 2,010 a tonne for the 57% iron grade in the last auction was too high, considering that buyers were getting the same earlier from NMDC Ltd for about INR 1,400 a tonne, before the Supreme Court on September 2 directed the state to hold E auctions.
He said there were no takers for about 65% of the stocks lined up for the last auction conducted on October 14.
When told that NMDC officials had said the pricing was in line with those in China and Japan, he said the price of 57% grade in China was about USD 110 (INR 5,390), which factored in about INR 3,000 for transport, beside 20% export duty.
On Karnataka e-auction prices, he said in addition to the base price, buyers would have to pay 10% for royalty, 12% as forest development charges and 1% cess, totaling 23% more, which pushed the price to INR 2,472 a tonne. Transport would cost another INR 750 a tonne.
In comparison, the 63.5% grade from Jharkhand could be got at INR 4,200 a tonne, inclusive of the transport cost of INR 2,200.
(Sourced from thehindubusinessline.com)
BL reported that the high prices of iron ore routed through E auctions and issues linked to iron content in dispatches are forcing steel and sponge iron makers in Karnataka to look to Jharkhand and Orissa.
Mr Dinesh Kumar Singhi MD of Karnataka based BMM Ispat told Business Line that the base price of INR 2,010 a tonne for the 57% iron grade in the last auction was too high, considering that buyers were getting the same earlier from NMDC Ltd for about INR 1,400 a tonne, before the Supreme Court on September 2 directed the state to hold E auctions.
He said there were no takers for about 65% of the stocks lined up for the last auction conducted on October 14.
When told that NMDC officials had said the pricing was in line with those in China and Japan, he said the price of 57% grade in China was about USD 110 (INR 5,390), which factored in about INR 3,000 for transport, beside 20% export duty.
On Karnataka e-auction prices, he said in addition to the base price, buyers would have to pay 10% for royalty, 12% as forest development charges and 1% cess, totaling 23% more, which pushed the price to INR 2,472 a tonne. Transport would cost another INR 750 a tonne.
In comparison, the 63.5% grade from Jharkhand could be got at INR 4,200 a tonne, inclusive of the transport cost of INR 2,200.
(Sourced from thehindubusinessline.com)
Saturday, October 15, 2011
ArcelorMittal puts 12 MTPA Orissa steel plant on backburner
Saturday, 15 Oct 2011
ET reported that perturbed over delays in getting necessary approvals and land acquisition issues, global steel giant ArcelorMittal is understood to have put its proposed 12 million tonnes steel plant in Orissa on back burner.
According to company sources, no progress has been made by the company in the state in last one and a half years and at the moment the company is focusing more on its plans for setting up steel units in Karnataka and Jharkhand.
Only 8 gram sabhas meetings out of 15 required for land acquisition in Orissa has been conducted till first half of 2010 and the status remains the same, sources said.
In 2006, ArcelorMittal had signed an MoU with the Orissa government to set up a 12 million tonnes per annum steel plant in four phases at Keonjhar, entailing an investment of INR 50,000 crore. The MoU is due for renewal in December 2011.
When asked whether project in Orissa was stalled, the company's India spokesperson declined to comment.
(sourced from ET)
ET reported that perturbed over delays in getting necessary approvals and land acquisition issues, global steel giant ArcelorMittal is understood to have put its proposed 12 million tonnes steel plant in Orissa on back burner.
According to company sources, no progress has been made by the company in the state in last one and a half years and at the moment the company is focusing more on its plans for setting up steel units in Karnataka and Jharkhand.
Only 8 gram sabhas meetings out of 15 required for land acquisition in Orissa has been conducted till first half of 2010 and the status remains the same, sources said.
In 2006, ArcelorMittal had signed an MoU with the Orissa government to set up a 12 million tonnes per annum steel plant in four phases at Keonjhar, entailing an investment of INR 50,000 crore. The MoU is due for renewal in December 2011.
When asked whether project in Orissa was stalled, the company's India spokesperson declined to comment.
(sourced from ET)
Sunday, October 9, 2011
Indian government to review 236 MoUs for setting up steel plants
Sunday, 09 Oct 2011
It is reported that unsatisfied with the progress of proposed steel projects entailing estimated investment of INR 11 lakh crore, the government will review hundreds of MoUs signed by companies in past 5 to 6 years as most of them have remained only on paper.
Mr Beni Prasad Verma steel minister said "Our companies have mastered the art of signing MoUs as most of them are on paper only. As many as 236 such agreements have been signed in last 5-6 years for setting up iron and steel units but most of them have neither acquired land nor have got mining leases to set up their units."
Most of the MoUs have been signed between private corporate houses with several states including Karnataka, Orissa, Chhattisgarh and Jharkhand. The government had set the target of producing 120 million tonnes of steel by March 2012 of which only 75 million tonnes to 78 million tonnes capacity has been created so far.
According to experts, the target looks unachievable in view of delays in setting up plants.
(sourced from ET)
It is reported that unsatisfied with the progress of proposed steel projects entailing estimated investment of INR 11 lakh crore, the government will review hundreds of MoUs signed by companies in past 5 to 6 years as most of them have remained only on paper.
Mr Beni Prasad Verma steel minister said "Our companies have mastered the art of signing MoUs as most of them are on paper only. As many as 236 such agreements have been signed in last 5-6 years for setting up iron and steel units but most of them have neither acquired land nor have got mining leases to set up their units."
Most of the MoUs have been signed between private corporate houses with several states including Karnataka, Orissa, Chhattisgarh and Jharkhand. The government had set the target of producing 120 million tonnes of steel by March 2012 of which only 75 million tonnes to 78 million tonnes capacity has been created so far.
According to experts, the target looks unachievable in view of delays in setting up plants.
(sourced from ET)
Tuesday, September 6, 2011
Pellet plants must for captive iron ore mines in Jharkhand
Tuesday, 06 Sep 2011
ET reported that Jharkhand has emerged as the first state to make it mandatory for companies with captive iron ore mines to set up pellet plants to utilize their increasing deposits of iron ore fines.
Availability of surplus iron ore in the state has also prompted the state's industry department to consider providing special incentives for industries to set up pellet plants.
Talking to ET, additional chief secretary (mines and geology) Mr AK Sarkar said it has formulated a policy that all captive iron ore mines will set up pellet plants to ensure the surplus deposit of fines are used in the interest of the state.
He said that "This way the environmentally hazardous fines will be used in the pellet plants and thus check pollution. At the same time, it will generate additional revenue and employment opportunities in the state.”
Mr Sarkar said that "Two companies Steel Authority of India and Usha Martin had been regularly seeking permission to dispose of their huge stocks of iron ore fines. While SAIL has generated a deposit of about 20 million tonnes of fines, Usha Martin has about 2 million tonnes. In view of their repeated requests, the state has decided to give them and all captive mine owners, a one time permission to sell their surplus stocks, but with certain conditions.”
He said that the government's move is likely to attract new investment in pellet plants. The industry secretary said while SAIL's Bokaro unit is in talks with POSCO for starting pelletization, Essar, Sesa Goa and Adhunik group have also shown interest in setting up pellet plants. Many other companies have also shown interest.”
He added that "Pelletization will check pollution and hence is more advantageous for the state.”
The blanket ban on sale of iron ore fines by captive iron ore mines in Jharkhand has resulted in some captive mines gathering huge stocks of fines.
(Sourced from ET)
ET reported that Jharkhand has emerged as the first state to make it mandatory for companies with captive iron ore mines to set up pellet plants to utilize their increasing deposits of iron ore fines.
Availability of surplus iron ore in the state has also prompted the state's industry department to consider providing special incentives for industries to set up pellet plants.
Talking to ET, additional chief secretary (mines and geology) Mr AK Sarkar said it has formulated a policy that all captive iron ore mines will set up pellet plants to ensure the surplus deposit of fines are used in the interest of the state.
He said that "This way the environmentally hazardous fines will be used in the pellet plants and thus check pollution. At the same time, it will generate additional revenue and employment opportunities in the state.”
Mr Sarkar said that "Two companies Steel Authority of India and Usha Martin had been regularly seeking permission to dispose of their huge stocks of iron ore fines. While SAIL has generated a deposit of about 20 million tonnes of fines, Usha Martin has about 2 million tonnes. In view of their repeated requests, the state has decided to give them and all captive mine owners, a one time permission to sell their surplus stocks, but with certain conditions.”
He said that the government's move is likely to attract new investment in pellet plants. The industry secretary said while SAIL's Bokaro unit is in talks with POSCO for starting pelletization, Essar, Sesa Goa and Adhunik group have also shown interest in setting up pellet plants. Many other companies have also shown interest.”
He added that "Pelletization will check pollution and hence is more advantageous for the state.”
The blanket ban on sale of iron ore fines by captive iron ore mines in Jharkhand has resulted in some captive mines gathering huge stocks of fines.
(Sourced from ET)
Thursday, September 1, 2011
SAIL to begin iron ore production from Chiria by 2014
Thursday, 01 Sep 2011
BS reported that Steel Authority of India Limited would start producing iron ore from the Chiria mines in the West Singhbhum district of Jharkhand by 2014.
As per report, SAIL is set to finalize an investment roadmap for the project following completion of the detailed project report next month.
SAIL had appointed Hatch Associates of Australia as consultant for preparing Chiria’s project report, which would be submitted soon. It plans to develop the mine with an initial capacity of 7 million tonnes per annum to be subsequently expanded to 15 million tonnes per annum in the coming years
Mr CS Verma chairman of SAIL told Business Standard that “We are fully dependent on Chiria for all our future expansions. The mine will be a lifeline for SAIL as reserves in other mines we have been operating deplete. The mine will become operational in the next three years with likely investment of INR 3,500 crore.”
Mr Verma said that “More than 40% of the iron ore requirement of 100 million tonne would be met from Chiria.”
Chiria, with proven reserves of over 1.8 billion tonne is one of the largest iron ore mines in Asia. While environment clearance for the mine was already in place, the environment ministry accorded the forest clearance to the BSE listed company earlier this year.
SAIL produces 14.5 million tonne steel annually now but it’s iron ore requirement is set to grow from 25 million tonne at present to 100 million tonne by 2020 as production capacity expands to 60 million tonne over this period.
sourced BS
Wednesday, August 24, 2011
Coal blocks will not be de allocated - NTPC
Wednesday, 24 Aug 2011
Mr Arup Roy Choudhury CMD of National Thermal Power Corporation confirmed CNBC-TV18 that the company’s coal blocks will not be de-allocated. He also said that almost 20 to 25% of their coal requirements would come from their mines in the next four to five years.
He indicated that the state electricity boards financial situation is a concern. He added that "For last seven to eight years, we have realized our dues on time without any defaults from the SEBs.”
Mr Choudhury expects the plant load factor to be maintained at 90%.
Q - Could you update us on the Jharkhand plant, the JV with Coal India? What is the latest?
A - There wasn’t any JV. The Jharkhand unit is a steel plant, which was originally a planned for higher capacity. We then proposed for lower capacity with lesser amount of land.
This project is still under finalization because the coal ministry has raised certain issues that the plant is located on the coal bearing areas. The issue is still being sorted by the government, but we haven’t planned anything for that project as of today.
Source Moneycontrol
He indicated that the state electricity boards financial situation is a concern. He added that "For last seven to eight years, we have realized our dues on time without any defaults from the SEBs.”
Mr Choudhury expects the plant load factor to be maintained at 90%.
Q - Could you update us on the Jharkhand plant, the JV with Coal India? What is the latest?
A - There wasn’t any JV. The Jharkhand unit is a steel plant, which was originally a planned for higher capacity. We then proposed for lower capacity with lesser amount of land.
This project is still under finalization because the coal ministry has raised certain issues that the plant is located on the coal bearing areas. The issue is still being sorted by the government, but we haven’t planned anything for that project as of today.
Wednesday, August 17, 2011
CIL may extend CBM tender deadline
Wednesday, 17 Aug 2011
BL reported that Coal India Ltd may extend the August 17 deadline for receiving bids for extraction and commercial utilization of coal bed methane from five mining assets.
According to sources, a turf battle between the key union ministries of coal and, petroleum and natural gas has already forced the company to extend the tender deadline, twice, from June.
The tender was slated to pave way for extraction of nearly 25 billion cubic metres of CBM and ensure safe underground mining of over 100 million tonnes of medium-grade coking coal in Jharkhand. High concentration of gas has made underground mining unsafe in the identified assets.
According to sources, while the coal ministry has extended its tacit approval to CIL on the issue, the company was yet to receive any formal clarification on closure of the tender and awarding the same as per schedule.
According to the tender, issued in April, CIL invited private players to invest in extraction of gas and sell the same in the open market to ensure returns. CIL was slated to get a share of the profit from sale of gas.
The ministry of petroleum and natural gas felt that the tender was overlapping in nature with CBM Policy and, should not be awarded without the requisite approval from the upstream regulator. The coal ministry was also urged to take cabinet approval on the issue.
The coal ministry, however, felt that the ambit of the CBM Policy does not include the CIL leasehold area. Also, according to the Mining Act there was no space for a second licensee in a particular mining leasehold area. It is understood that the coal ministry was yet to submit any proposal for cabinet committee's consideration in this regard.
(Sourced from BL)
BL reported that Coal India Ltd may extend the August 17 deadline for receiving bids for extraction and commercial utilization of coal bed methane from five mining assets.
According to sources, a turf battle between the key union ministries of coal and, petroleum and natural gas has already forced the company to extend the tender deadline, twice, from June.
The tender was slated to pave way for extraction of nearly 25 billion cubic metres of CBM and ensure safe underground mining of over 100 million tonnes of medium-grade coking coal in Jharkhand. High concentration of gas has made underground mining unsafe in the identified assets.
According to sources, while the coal ministry has extended its tacit approval to CIL on the issue, the company was yet to receive any formal clarification on closure of the tender and awarding the same as per schedule.
According to the tender, issued in April, CIL invited private players to invest in extraction of gas and sell the same in the open market to ensure returns. CIL was slated to get a share of the profit from sale of gas.
The ministry of petroleum and natural gas felt that the tender was overlapping in nature with CBM Policy and, should not be awarded without the requisite approval from the upstream regulator. The coal ministry was also urged to take cabinet approval on the issue.
The coal ministry, however, felt that the ambit of the CBM Policy does not include the CIL leasehold area. Also, according to the Mining Act there was no space for a second licensee in a particular mining leasehold area. It is understood that the coal ministry was yet to submit any proposal for cabinet committee's consideration in this regard.
(Sourced from BL)
Sunday, August 7, 2011
JSPL to use new smelting tech in J'khand, Orissa
Aug 7, 2011
By Sanjay OjhaSanjay Ojha, TNN
RANCHI: The Jindal Steel and Power Limited (JSPL) for the first time will use a technology for smelting iron ore fines by directly using non-coking coal in its upcoming plants in Jharkhand and Orissa.
Of the two upcoming integrated steel plants of the company, one will be of six million tonne per annum (MTPA) capacity at Angul in Orissa and the other will be of three MTPA at Patratu in Jharkhand.
The technology will not only be cost-effective but will also offer significant environmental benefits to the steel industry. It is developed by Australian major Rio Tinto and will be used in India at the JSPL's steel plants in Jharkhand and Orissa. The technology known as HIsmelt (high intensity smelting) will be used in a fully integrated steel making facility.
Assistant vice-president of the JSPL A K Biruly said, "We will be introducing HIsmelt technology for the first time at our plants in Jharkhand and Orissa. The technology is for direct smelting process for making iron straight from the ore. It smelts iron ore fines directly using non-coking coals and offers significant economic and environmental benefits to the steel industry."
He said the MoU for use of this new technology was recently signed by JSPL chairman-cum-managing director Naveen Jindal and chief executive of Rio Tinto Sam Walsh.
According to sources in the JSPL, HIsmelt process is the future for iron making, particularly in locations where coking coal and good quantity of iron ore lumps are not available.
"In India, most of the steel makers are dependent on high quality imported cocking coal. Once the technology starts using iron ore fines and non-coking coal, we will be able to save the environment also because huge amount of iron ore fines go waste every years," said a source. (TOI)
By Sanjay OjhaSanjay Ojha, TNN
RANCHI: The Jindal Steel and Power Limited (JSPL) for the first time will use a technology for smelting iron ore fines by directly using non-coking coal in its upcoming plants in Jharkhand and Orissa.
Of the two upcoming integrated steel plants of the company, one will be of six million tonne per annum (MTPA) capacity at Angul in Orissa and the other will be of three MTPA at Patratu in Jharkhand.
The technology will not only be cost-effective but will also offer significant environmental benefits to the steel industry. It is developed by Australian major Rio Tinto and will be used in India at the JSPL's steel plants in Jharkhand and Orissa. The technology known as HIsmelt (high intensity smelting) will be used in a fully integrated steel making facility.
Assistant vice-president of the JSPL A K Biruly said, "We will be introducing HIsmelt technology for the first time at our plants in Jharkhand and Orissa. The technology is for direct smelting process for making iron straight from the ore. It smelts iron ore fines directly using non-coking coals and offers significant economic and environmental benefits to the steel industry."
He said the MoU for use of this new technology was recently signed by JSPL chairman-cum-managing director Naveen Jindal and chief executive of Rio Tinto Sam Walsh.
According to sources in the JSPL, HIsmelt process is the future for iron making, particularly in locations where coking coal and good quantity of iron ore lumps are not available.
"In India, most of the steel makers are dependent on high quality imported cocking coal. Once the technology starts using iron ore fines and non-coking coal, we will be able to save the environment also because huge amount of iron ore fines go waste every years," said a source. (TOI)
Wednesday, March 23, 2011
Mining, metallurgy contribute 11% to Jharkhand GSDP
Tue, Mar 22, 2011 at 12:22 |Source:PTI
Mining and metallurgical downstream activities in Jharkhand account for more than 11% of the Gross State Domestic Product (GSDP), according to a survey.
"In percentage terms, contribution of mining and quarrying to the state''s GSDP varied between 14.31% in 2000-01 and 11.35% in 2008-09," states the Jharkhand Economic Survey 2010-11.
Mining and quarrying contributed Rs 8,591.8 crore to the GSDP at factor cost and current prices during 2008-09, it added.
The survey further states, "It (mining and metallurgical activities) contributes over Rs 8 billion per annum or about 15% of Jharkhand''s total fiscal receipts, second only to sales tax."
Royalty collections from mineral extraction in the state, the report says, have steadily increased from Rs 765.7 crore in 2002-03 to Rs 1,730.3 crore in 2009-10.
"The state has set a target royalty collection of Rs 2,086 crore for 2010-11 and collection stands at Rs 1,281.6 crore as on December 10, 2010," it said.
As on December 20, 2010, a total of 11,416 instances were recorded in the state, where royalty payments of about Rs 258.5 crore were due to the government. Out of these, a total of 154 cases have been fully settled, while another 245 have been partially settled and royalty dues of Rs 4.96 crore have been realised.
The value of mineral production in the state during 2008-09 was Rs 9,443 crore, which has decreased by about two per cent compared to the previous year.
The survey states that Jharkhand stands at fourth position in the country in terms of mining activities and accounted for 7.73% of the total value of mineral production during 2008-09 fiscal.
Production of coal, which contributes 87.37% to the total value of minerals produced in the state, increased by 6.34%, while output of iron ore, copper concentrate, manganese ore, bauxite and quartz registered an increase of 2.2%, 636%, 33%, 27% and 19%, respectively, during 2008-09 vis-a-vis the previous year.
However, the output of limestone, laterite, gold and fireclay declined by 18%, 33%, 32% and 36%, respectively, owing to disruptions by Naxal outfits and low market demand, added the survey.
Mining and metallurgical downstream activities in Jharkhand account for more than 11% of the Gross State Domestic Product (GSDP), according to a survey.
"In percentage terms, contribution of mining and quarrying to the state''s GSDP varied between 14.31% in 2000-01 and 11.35% in 2008-09," states the Jharkhand Economic Survey 2010-11.
Mining and quarrying contributed Rs 8,591.8 crore to the GSDP at factor cost and current prices during 2008-09, it added.
The survey further states, "It (mining and metallurgical activities) contributes over Rs 8 billion per annum or about 15% of Jharkhand''s total fiscal receipts, second only to sales tax."
Royalty collections from mineral extraction in the state, the report says, have steadily increased from Rs 765.7 crore in 2002-03 to Rs 1,730.3 crore in 2009-10.
"The state has set a target royalty collection of Rs 2,086 crore for 2010-11 and collection stands at Rs 1,281.6 crore as on December 10, 2010," it said.
As on December 20, 2010, a total of 11,416 instances were recorded in the state, where royalty payments of about Rs 258.5 crore were due to the government. Out of these, a total of 154 cases have been fully settled, while another 245 have been partially settled and royalty dues of Rs 4.96 crore have been realised.
The value of mineral production in the state during 2008-09 was Rs 9,443 crore, which has decreased by about two per cent compared to the previous year.
The survey states that Jharkhand stands at fourth position in the country in terms of mining activities and accounted for 7.73% of the total value of mineral production during 2008-09 fiscal.
Production of coal, which contributes 87.37% to the total value of minerals produced in the state, increased by 6.34%, while output of iron ore, copper concentrate, manganese ore, bauxite and quartz registered an increase of 2.2%, 636%, 33%, 27% and 19%, respectively, during 2008-09 vis-a-vis the previous year.
However, the output of limestone, laterite, gold and fireclay declined by 18%, 33%, 32% and 36%, respectively, owing to disruptions by Naxal outfits and low market demand, added the survey.
Friday, March 11, 2011
Coal Min turns down RINL request to swap coal blocks
Friday 11 March 2011, 1:01 PM
New Delhi, Mar 11 (PTI) The Coal Ministry has turned down the request of state-run Rashtriya Ispat Nigam Limited (RINL) for swapping two of its coking coal blocks in Jharkhand with other reserves.
"As regards allocation of alternative coal block(s), there is no policy/guidelines for allocation of alternative coal block in lieu of surrendered coal block," the ministry said on its website.
RINL, whose two coking coal blocks in Jharkhand -- Mahal allocated in 2005 and Tenughat-Jhirki allocated in 2008 -- were de-allocated by the Coal Ministry at the beginning of this month, had earlier requested permission to surrender these blocks in lieu of two alternative blocks in the region.
Instead, the Coal Ministry has asked the steel firm to apply afresh for coal blocks.
"RINL is at liberty to apply for blocks as and when applications for a fresh list of coal blocks (are invited)... The request will be considered along with other applications, as received then, as per the... guidelines for allocation of coal blocks," the ministry said.
The Coal Ministry had cancelled the allocation of two coking coal blocks having reserves of about 500 million tonnes in Jharkhand to RINL as the steel firm had difficulties in developing the block.
As per the Steel Ministry, not only were the coal seams deep-seated and intermeshed with gaseous deposits, obstructions in the form of railway lines and nearby rivers also existed, the ministry had said.
The Mahal block has deposits of 258 million tonnes of coking coal, while the Tenughat-Jhirki block holds an estimated 215 million tonnes of coal.
It added that both blocks involved a high investment and production cost. Moreover, RINL has not met the milestones for developing the blocks.
"As regards allocation of alternative coal block(s), there is no policy/guidelines for allocation of alternative coal block in lieu of surrendered coal block," the ministry said on its website.
RINL, whose two coking coal blocks in Jharkhand -- Mahal allocated in 2005 and Tenughat-Jhirki allocated in 2008 -- were de-allocated by the Coal Ministry at the beginning of this month, had earlier requested permission to surrender these blocks in lieu of two alternative blocks in the region.
Instead, the Coal Ministry has asked the steel firm to apply afresh for coal blocks.
"RINL is at liberty to apply for blocks as and when applications for a fresh list of coal blocks (are invited)... The request will be considered along with other applications, as received then, as per the... guidelines for allocation of coal blocks," the ministry said.
The Coal Ministry had cancelled the allocation of two coking coal blocks having reserves of about 500 million tonnes in Jharkhand to RINL as the steel firm had difficulties in developing the block.
As per the Steel Ministry, not only were the coal seams deep-seated and intermeshed with gaseous deposits, obstructions in the form of railway lines and nearby rivers also existed, the ministry had said.
The Mahal block has deposits of 258 million tonnes of coking coal, while the Tenughat-Jhirki block holds an estimated 215 million tonnes of coal.
It added that both blocks involved a high investment and production cost. Moreover, RINL has not met the milestones for developing the blocks.
Friday, March 4, 2011
CoalMin takes back 2 blocks from RINL
Mar03, 2011
Press Trust of India
"A decision to take back both the blocks was taken based on a letter from the Ministry of Steel which said RINL has difficulties in developing the block, which it found economically unviable," a Coal Ministry source told PTI.
As per the Steel Ministry, not only coal seam was deep- seated and the area has gaseous deposits but had obstructions like railway line and river flowing near it, the source said.
RINL was looking at swapping the twin blocks Mahal and Tenughat-Jhirki, allocated to it in 2005 and 2008 respectively, citing difficulties in developing the mines.
The Mahal block has a deposit of 258 million tonne of coking coal while the Tenughat-Jhirki has an estimated deposit of 215 million tonne.
"Since there is no policy in the Coal Ministry for the alternative coal blocks, the blocks were taken back," the source said.
He added that both the blocks involved high investment and production cost and moreover RINL had not met the milestones fixed for developing the blocks.
When contacted, RINL Chairman and Managing Director P K Bishnoi said the company has so far not received any such information from the Coal Ministry regarding de-allocation of the blocks.
He, however, added that RINL had requested the Steel Ministry to take up the issue with the Coal Ministry as the blocks were not economically viable.
"The coal seam in the blocks are situated at the depth of 300 meters to 1,200 metres. Besides a river is also flowing near it," Bishnoi said adding that under the circumstances the company wanted some other blocks.
Press Trust of India
New Delhi: The Coal Ministry has canceled the allocation of two coking coal blocks, having reserves of about 500 million tonne, in Jharkhand to state-run Rashtriya Ispat Nigam (RINL).
"A decision to take back both the blocks was taken based on a letter from the Ministry of Steel which said RINL has difficulties in developing the block, which it found economically unviable," a Coal Ministry source told PTI.
As per the Steel Ministry, not only coal seam was deep- seated and the area has gaseous deposits but had obstructions like railway line and river flowing near it, the source said.
RINL was looking at swapping the twin blocks Mahal and Tenughat-Jhirki, allocated to it in 2005 and 2008 respectively, citing difficulties in developing the mines.
The Mahal block has a deposit of 258 million tonne of coking coal while the Tenughat-Jhirki has an estimated deposit of 215 million tonne.
"Since there is no policy in the Coal Ministry for the alternative coal blocks, the blocks were taken back," the source said.
He added that both the blocks involved high investment and production cost and moreover RINL had not met the milestones fixed for developing the blocks.
When contacted, RINL Chairman and Managing Director P K Bishnoi said the company has so far not received any such information from the Coal Ministry regarding de-allocation of the blocks.
He, however, added that RINL had requested the Steel Ministry to take up the issue with the Coal Ministry as the blocks were not economically viable.
"The coal seam in the blocks are situated at the depth of 300 meters to 1,200 metres. Besides a river is also flowing near it," Bishnoi said adding that under the circumstances the company wanted some other blocks.
SAIL to develop 6,500 acres owned by FCI at Sindri
Friday, 04 Mar 2011 by ET
State owned Steel Authority of India will develop unused land of about 6,500 acres owned by Fertilizer Corp of India at its Sindri unit in Jharkhand , but will wait for liberal terms from the government before venturing with its proposal.
Mr CS Verma chairman of SAIL said that “There have been informal discussions with the fertilizer ministry and we are waiting for a clear proposal from them, including the rate at which the land can be given, before we take a final call.”
Mr Verma declined to comment on SAIL’s estimate of the land at Sindri. He added that “The size of the land is adequate for a 5 million tonnes steel plant.”
The government initiated the talks to revive the Fertilizer Corp unit which has been shut since 2002. The plan included various sale options before short listing the idea of giving the land to another state-owned enterprise. SAIL is also keen on building a steel plant at Sindri as it can be integrated with the company’s existing unit at Bokaro which is 60 km away and can also use ore from nearby mine at Gua.
According to people familiar with the talks, SAIL had insisted on the land at Sindri after unconfirmed reports that ArcelorMittal India , too, was planning to approach the government for permission to build a steel project at the site.
Mr Verma declined to comment on SAIL’s estimate of the land at Sindri. He added that “The size of the land is adequate for a 5 million tonnes steel plant.”
According to estimates, the cost of building a 5 million tonne steel plant is about INR 22,000 to INR 23,000 crore. While the talks are still on, people familiar with the matter say that the fertilizer ministry has asked SAIL to consider an option to build a fertilizer unit at the site.
Mr CS Verma chairman of SAIL said that “There have been informal discussions with the fertilizer ministry and we are waiting for a clear proposal from them, including the rate at which the land can be given, before we take a final call.”
Mr Verma declined to comment on SAIL’s estimate of the land at Sindri. He added that “The size of the land is adequate for a 5 million tonnes steel plant.”
The government initiated the talks to revive the Fertilizer Corp unit which has been shut since 2002. The plan included various sale options before short listing the idea of giving the land to another state-owned enterprise. SAIL is also keen on building a steel plant at Sindri as it can be integrated with the company’s existing unit at Bokaro which is 60 km away and can also use ore from nearby mine at Gua.
According to people familiar with the talks, SAIL had insisted on the land at Sindri after unconfirmed reports that ArcelorMittal India , too, was planning to approach the government for permission to build a steel project at the site.
Mr Verma declined to comment on SAIL’s estimate of the land at Sindri. He added that “The size of the land is adequate for a 5 million tonnes steel plant.”
According to estimates, the cost of building a 5 million tonne steel plant is about INR 22,000 to INR 23,000 crore. While the talks are still on, people familiar with the matter say that the fertilizer ministry has asked SAIL to consider an option to build a fertilizer unit at the site.
Monday, February 7, 2011
RINL unveils further expansion plans
Monday, 07 Feb 2011
Rashtriya Ispat Nigam Limited on Sunday unveiled investment plans to expand its capacity to 8.4 million tonnes per annumof steel in the next five years.
Mr PK Bishnoi CMD of RINL told media persons in Bhubaneswar that RINL would add an additional production of 3 million tonnrs steel with an investment of INR 12,500 crore from the next fiscal.
He said “We will add another 1 million tonne of steel with an investment of INR 7,000 crore from the year 2013-14. We will appoint a consultant in next ten days for this purpose. It will increase the company’s capacity to 7.3 million tonnes.”
Mr Bishnoi said that the company plans to produce4.4 million tonnes of high quality steel of with an investment of INR 25,000 crore from the financial year 2014-15 because the consumption of steel will go up with the urbanization of India.
He added that “After expansion plan of RINL, we want to set up new steel plants in Orissa, Jharkhand and Rajasthan. We have signed a MoU with the Karnataka based Kudurnor Iron Company Ltd for setting up a steel plant.”
Rashtriya Ispat Nigam Limited on Sunday unveiled investment plans to expand its capacity to 8.4 million tonnes per annumof steel in the next five years.
Mr PK Bishnoi CMD of RINL told media persons in Bhubaneswar that RINL would add an additional production of 3 million tonnrs steel with an investment of INR 12,500 crore from the next fiscal.
He said “We will add another 1 million tonne of steel with an investment of INR 7,000 crore from the year 2013-14. We will appoint a consultant in next ten days for this purpose. It will increase the company’s capacity to 7.3 million tonnes.”
Mr Bishnoi said that the company plans to produce4.4 million tonnes of high quality steel of with an investment of INR 25,000 crore from the financial year 2014-15 because the consumption of steel will go up with the urbanization of India.
He added that “After expansion plan of RINL, we want to set up new steel plants in Orissa, Jharkhand and Rajasthan. We have signed a MoU with the Karnataka based Kudurnor Iron Company Ltd for setting up a steel plant.”
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