SAIL expansion may take a hit on haze over lease
SAIL has earmarked Rs 2,500 crore to raise its iron ore capacity to 29.5 million tonne (mt) by 2011-12 from 17 mt currently.
By Rakhi Mazumdar, TNN |
KOLKATA: A majority of Steel Authority of India’s (SAIL) iron ore mining leases have expired, some about 10 years ago, but are yet to be renewed by the respective state governments. This ambiguous situation now threatens to derail SAIL’s mega mine expansion plans.
The country’s largest steel company has earmarked Rs 2,500 crore to raise its iron ore capacity to 29.5 million tonne (mt) by 2011-12 from 17 mt currently. This is in line with its ambitious plans to boost hot metal capacity to 23 mt.
“We have 25 mining leases across Chhattisgarh, Orissa and Jharkhand. But a majority of our leases have expired but are being run on a ‘deemed extension’ basis. In some cases, the lease has expired nearly 10 years ago and inspite of applying for renewal, the state governments are yet to take any decision,” SAIL’s director (personnel) & in-charge raw materials division and corporate planning G Ojha told ET.
“As a result of this uncertainty, we are unable to make any concrete plans for mine expansion,” Mr Ojha added.
For instance, SAIL holds 11 mining leases in Jharkhand, out of which lease on 10 blocks have expired. Chiria mines in Jharkhand is a classic example, where the state government has refused to renew the mining lease for three out of the 10 blocks under SAIL’s leasehold. The two sides, Jharkhand government and SAIL, are locked in a legal battle over the issue.
As part of its corporate plan for 2011-12, SAIL has decided to invest Rs 1,800 crore in Chiria to raise its total output to 7 mt. The current unsettled conditions could have serious ramifications on the steel major’s investment plan for its mines.
Other plans include a proposed hike in capacity to 5 mt from 4.5 mt at Kiriburu, to 5 mt from 4.3 mt at Meghahatuburu, to 8 mt from 4.2 mt at Bolani, to 3 mt from 2.1 mt at Barsua, to 4 mt from 2.4 mt at Gua and to 1.6 mt from 0.9 mt at Kalta.
The country’s largest steel company has earmarked Rs 2,500 crore to raise its iron ore capacity to 29.5 million tonne (mt) by 2011-12 from 17 mt currently. This is in line with its ambitious plans to boost hot metal capacity to 23 mt.
“We have 25 mining leases across Chhattisgarh, Orissa and Jharkhand. But a majority of our leases have expired but are being run on a ‘deemed extension’ basis. In some cases, the lease has expired nearly 10 years ago and inspite of applying for renewal, the state governments are yet to take any decision,” SAIL’s director (personnel) & in-charge raw materials division and corporate planning G Ojha told ET.
“As a result of this uncertainty, we are unable to make any concrete plans for mine expansion,” Mr Ojha added.
For instance, SAIL holds 11 mining leases in Jharkhand, out of which lease on 10 blocks have expired. Chiria mines in Jharkhand is a classic example, where the state government has refused to renew the mining lease for three out of the 10 blocks under SAIL’s leasehold. The two sides, Jharkhand government and SAIL, are locked in a legal battle over the issue.
As part of its corporate plan for 2011-12, SAIL has decided to invest Rs 1,800 crore in Chiria to raise its total output to 7 mt. The current unsettled conditions could have serious ramifications on the steel major’s investment plan for its mines.
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Other plans include a proposed hike in capacity to 5 mt from 4.5 mt at Kiriburu, to 5 mt from 4.3 mt at Meghahatuburu, to 8 mt from 4.2 mt at Bolani, to 3 mt from 2.1 mt at Barsua, to 4 mt from 2.4 mt at Gua and to 1.6 mt from 0.9 mt at Kalta.
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