18 steel cos eligible for mining lease

Eighteen out of the 49 steel companies who signed memorandum of understanding (MoU) with the Orissa government for setting up of steel projects in the state, have become eligible for the grant of mineral concession as per the terms and conditions embodied in the MoU.

While 9 companies are in the process of obtaining prospecting license (PL) or mining lease (ML), the process is yet to take off for other 9 companies. The government has so far signed MoU with 49 steel companies envisaging a combined capacity of 78 million tonne with an aggregate investment of Rs 1,98,150 crore.

The companies which have become eligible for grant of mining lease are Posco India, Visa Industries, Action Ispat and Power, Adhunik Metaliks, Deepak Steel and Power, OCL Iron and Steel, Jindal Stainless Ltd., Bhushan Steel and Strips, Arati Steel, Patnaik Steel and Alloys Ltd., official sources said.

Consistent with the policy to provide raw material security to the MoU signed companies, the government has recommended prospecting license (PL) application of Posco India, billed as the largest foreign direct investment (FDI) proposal, for an area of 2500 hectares for the Khandadhar iron ore mines in Sundergarh district to the Centre.

Similarly, three other steel companies namely SMC Power Generation, Action Ispat and Power, Jindal Stainless Ltd have been recommended for grant of PL or mining lease (ML).

The government has recommended for grant of ML over 246.039 hectares in village Khandbandh, Jaladihi and Baitarani RF in Keonjhar district in favour of SMC Power Generation Ltd. The company is setting up a 0.25 million tonne per annum (MTPA) sttel plant in the first phase at Hirma (Jharsuguda),

Action Ispat and Power has been recommended for grant of PL over 235 hectares in Unchabali area and Jindal Stainless Ltd for PL over 892 hectares in Horomoto of Keonjhar district.

Besides, terms and conditions for grant of PL or ML have been issued in favour of five companies, such as Bhushan Steel, Adhunik Metaliks, Sree Metaliks, Deepak Steels and Power, OCL Iron and Steel.

The terms and conditions for issue of PL over an area of 280.755 hectares in village Marsuan, Tiriba and Narasingpur in Keonjhar district has been issued in favour Bhushan Steel, which is setting up a 3 million tonne steel plant at Meramundali in the first phase.

Similarly, the terms and conditions for ML have been issued in favour of Adhunik Metaliks, setting up a steel plant near Rourkela, over 109.79 hectares in Deojhar-Kulum area of Keonjhar district.

The terms and conditions for grant of ML was also issued in favour of Sree Metaliks, setting up its project at Loidapada (near Barbil) in Keonjhar district, over 35.774 hectares in Khandabandh area of the same district.

Besides, the terms and conditions for grant of mining lease have been issued to Deepak Steels and Power (over 38.67 hectares in Kahandabandh ) and OCL Iron and Steel (over 45.131 hectares area in Kundaposi in Keonjhar district).

However, the government is yet to recommend the case of Visa Industries, Scaw Industries, Maheswary Ispat, Eastern Steel and Power, SPS Sponge Iron, Patnaik Steel and Alloys and Viraj Steel and Energy for grant of PL or ML, sources added.

It may be noted, the state government has formulated guidelines for making recommendation for grant of prospecting license (PL) or mining lease (ML). Accordingly, the assessment of the quantum of deposit for mineral concession is done based on the first phase requirement which is 1.6 times of the steel making capacity of the MoU signed companies for a period of 25 years.