Odisha Government has
recommended an iron ore mining lease for Bhuhan Steel to the central
government. The government has taken this step while comply a Supreme Court
order.
“The state government
has recommended one portion of Thakurani iron ore mines with an estimated
reserve of 77 million tonnes after a supreme court order†said a senior
official at the steel and mines department.
The company had gone
to the apex court against the state government for grant of iron ore mining
lease citing its agreement with the Odisha government in the MoU signed in
2005.
According to the MoU
signed between the two on 3rd November 2005, the state government
had agreed to recommend to the government of India for allotment of iron ore
mines so as to meet the requirement for the period of 25 years related to the
installed capacity. The company has already commissioned the 1st
phase of the project with an installed capacity of 3 million tonnes per annum (mtpa)
and the second phase expansion process has already started which will expand
the capcity to 5 mtp. The plant produces billets, pig iron and sponge iron.
However, despite the
recommendation for mining lease, the company has again gone to the apex court against
the state government for grant of more reserves.
The state has
recommended this mining lease just before the new resolution come into force. As
per the new resolution , the state government
will no longer give any fresh assurance on supply of raw materials to steel
companies in the revised MoUs to be signed with those steel makers whose earlier Memorandum of
Understanding (MoU) validity period have already expired.
Reported by Tapan Moharana
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