Rowghat project cost should include security expenses: SAIL

Centre to review steel giant's demand to include security expenses in the project cost of Rs 5,000 crore for developing Rowghat mines

The Centre may soon review steel giant SAIL's demand to include security expenses in the project cost of Rs 5,000 crore for developing Rowghat mines in Naxal hotbed in Chhattisgrah.

"SAIL officials recently raised the issue of construction of railway line between Rowghat and Dalli-Rajhra stretch in Chhattisgarh with the Steel Ministry demanding that the cost of security be included in the project cost," a Steel Ministry official said.

The official added that "Steel Secretary G Mohan Kumar in a high-level meeting to address the bottlenecks impeding mega projects in the sector has asked the Ministry to review the matter with officials from Ministry of Railways".

Green approvals for developing the Rowghat mines, which has an estimated 500 million tonnes (MT) of ore reserves, was given in 2009, but the process for developing it at an estimated cost of Rs 5,000 crore is delayed due to Naxal activities.

The phase-I of the project comprising of 95 km stretch is under construction at present.

Earlier in the wake of Maoist threats, the Home Ministry had approved deployment of paramilitary forces at Rowghat iron ore mine to begin the development work.

SAIL had approached the Home Ministry for the deployment and was willing to foot the bill.

SAIL could not start the project, which required felling of around 1.5 lakh trees, despite getting all clearances way back in 2009.

The Rowghat mines, spread over 2,000 hectares, is crucial for meeting SAIL's Bhilai Steel Plant's (BSP) iron ore needs.

At present, BSP sources its requirement from Dalli-Rajhara mines, which is fast depleting. Incidentally, SAIL is raising production capacity at BSP as part of its Rs 72,000 crore capacity expansion plan.

Development of the mine would ensure raw material security for SAIL to meet its capacity addition target of 50 million tonnes per annum (MTPA) by 2025.