A proposed ferro alloys joint venture between SAIL and MOIL in Chhattisgarh worth an estimated Rs 400 crore has been recommended for clearance by a green panel, but with certain riders.
"After detailed deliberations, the Committee (Expert Appraisal) recommended the project for environmental clearance subject to specific conditions," sources said.
The project had come up for deliberation in a meeting of the committee of the Ministry of Environment and Forests recently.
The conditions include development of green belt in at least 33% of the project area and preparation of a risk and disaster management plan, along with mitigation measures, among others, sources added.
SAIL & MOIL Ferro Alloys Pvt Ltd, a joint venture of Steel Authority of India Ltd (SAIL) and MOIL, was formed to set up a 1 lakh tonnes per annum ferro alloys plant, with both the public sector firms having equity partnership of 50% each.
Last month, MOIL Ltd had said its proposed ferro alloy joint venture with Steel Authority of India would be operational within the next two years.
The largest domestic manganese producer had signed a Memorandum of Understanding (MoU) with SAIL to set up the ferro alloy-making facility in Chhattisgarh. The JV agreement with SAIL was signed in 2007.
Ferro alloys are used in steel-making for de-oxidising purposes.
MOIL currently operates 10 mines in the country -- six in the Nagpur and Bhandara districts of Maharashtra and four in Balaghat district of Madhya Pradesh.
The company meets about half of the total requirement of dioxide ore in the country. At present, MOIL's annual production amounts to around 11 lakh tonnes.