CoalMin takes back 2 blocks from RINL

Mar03, 2011

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.

Steel minister reviews the progress of Jagdishpur SAIL unit

Saturday, 29 Jan 2011
Mr Beni Prasad Verma steel minister held a meeting with senior officials from ministry of steel & Steel Authority of India Limited at Lucknow and reviewed the progress of the ongoing revival work of Jagdishpur SAIL Unit which is erstwhile Malvika Steel at Jagdishpur.

Mr UP Singh joint secretary ministry of steel, Mr CS Verma chairman of SAIL, Mr SN Singh MD of RSP and representatives from Kobe Steel were among those present during the meeting.
While expressing satisfaction over the status and progress, Mr Verma commended the SAIL team for nearing the completion of warehouse and galvanized corrugation unit.

Mr CS Verma chairman of SAIL outlined the proposed strategy for the JSU and stated that the revival work is going on as per schedule and the unit will be successfully operational soon.
It is noteworthy that SAIL acquired the assets of erstwhile Malvika Steel at Jagdishpur in the year 2009 which were registered in SAIL’s name in June 2010. For reviving this setup and to supply value added finished products to meet the demand of the region, initially four main units were proposed under Phase 1. Two units namely, a warehouse with a capacity of 12,000 tonnes per annum and a GC unit of capacity 13,000 tonnes per annum are in final stages and shall be ready for commissioning very soon.

Work for two more units under the current phase viz. a TMT Bar Mill of capacity 150,000 tons per annum and a crash barrier manufacturing unit of capacity 10,000 tons per annum is progressing as per schedule and shall be completed by November 2011.
For Phase, discussions with KOBE Steel of Japan are being held for which a joint task force team has been formed which is likely to submit its report in March 2011. Options for setting up a 1000 MW gas based power plant and a steel plant based on the technology of gas based DRI and EAF for making value added products are being examined.

SAIL is also carrying out many activities under Corporate Social Responsibility in and around Jagdishpur. The School inside the campus has been renovated with basic amenities and playground. 210 children have been registered with the school and are studying. Medical health check up camps organized in nearby villages/ schools regularly and necessary medicines disbursed. Medical health centre with one doctor and two pharmacists is functional; one ambulance is also in operation. Many patients are being examined daily in the health centre and free medicines are provided to them.
Steel minister stated that for further industrial development of the State of Uttar Pradesh, SAIL will also be examining the feasibility of setting up a Steel Processing Unit at Barabanki and Gonda.