Rajasthan to grant mining rights to RINL and SAIL

Monday, Jan02, 2012


JAIPUR: The Rajasthan government has decided to grant iron ore mining rights to two public sector units - Rashtriya Ispat Nigam Limited (RINL) and Steel Authority of India Limited (SAIL) - in Bhilwara. Rajasthan industries and mines minister Rajendra Pareek told ET that the state government is sending proposal to central government for the allotment of mines to these two PSUs. "We have earmarked 864.6 ha for SAIL and 1043 ha mining area for RINL. We will allot them mines once we get the nod from central government," he said.

The two PSUs are likely to invest Rs 4000 crore in Bhilwara for creating 5 million tonnes mechanized iron ore mining capacity at Bhilwara. "Once the mining rights are granted, the state will get 2 million tonne per annum greenfield steel plant, 1.8 million tonne per annum pelletisation plant and one miilion tonne per annum sponge iron plant. These projects are likely to create 2000 direct jobs and over 20,000 indirect employment opportunities," he said.

Apart from these two companies, steel pipemaker Jindal SAW is also setting up a beneficiation plant in the same geography to produce approximately 6,000 tonnes of concentrate per day. It has executed a mining lease agreement for 30 years with Rajasthan for iron ore mines having approximately 180 mn tonnes of reserves of various categories of iron ores.

The iron ore mines of Bhilwara were discovered way back in 1967. But the ore in the area is of magnetite grade, yielding only about 30-35% recovery which is lower than that mined in Karnataka and other states. It had kept steel companies away from these mines for long. Now companies are taking interest after the Rajasthan government has assured linkages to limestone from Jaisalmer and dolomite from Jodhpur.

(sourced ET)

Indian government update on land for mining to private companies

Monday, 14 Mar 2011

Mr Dinsha Patel Indian minister of state (independent charge) for mines informed the Lok Sabha that the state governments are competent to grant mineral concessions including Reconnaissance Permit, Prospecting Licence and Mining Lease under the provisions of the Mines and Minerals Act 1957 subject to prior approval of the central government.

Subsequent to the prior approval of the central government, mining leases etc are executed by the state governments with the mining agencies after following the due procedures ie obtaining forest and environment clearances and approval of mining plan from the Indian Bureau of Mines.

Whilst processing the proposals recommended by the State Governments for prior approval of the Central Government, the Ministry of Mines examines the same in the light of the provisions of the MMDR Act, 1957, the Mineral Concession Rules, 1960 and the guidelines framed in this regard and where necessary, in consultation with the State Governments and specialized agencies like the Indian Bureau of Mines, the Geological Survey of India and the Department of Atomic Energy. The Ministry of Mines is conscious of its responsibility to ensure that the mineral concession regime functions in a transparent and efficient manner. In this regard, the Ministry has, in consultation with the State Governments, issued the following guidelines:-

1. Comprehensive guidelines dated June 24th 2009, in order to bring more clarity in processing the mineral concession proposals. The guidelines also seek to ensure application of uniform criteria by the State Governments while examining and recommending proposals to the Central Government.

2. Guidelines dated February 9th 2010 on ‘special reasons’ to be adopted by all State Governments while recommending a mineral concession proposal in favour of a later applicant in a non notified area.

3. Guidelines dated October 13th 2010 regards maps in order to ensure that the areas recommended by the State Governments for mineral concessions are clearly demarcated.