Orissa Sponge Iron and Steel which is debt – ladden is making last strong efforts to retain its iron ore mine at Keonjhar in Odisha as the allocation will expire on January 11 with no investment made to develop it since 2002.
Bhushan Steel, which is also reeling under debt, plans to acquire majority stake in the company to use the iron ore from the mine at its existing plant and improve its margins.
In an interesting development, OSIS has deposited INR.28.96 crore with the Orissa Compensatory Afforestation Fund Management and Planning Authority for acquiring the forest land required to start mining.
In a letter dated January 2 to the Principal Secretary, Department of Steel and Mines, Government of Odisha, PK Mohanty, Vice-Chairman and Managing Director, OSIS, has confirmed payment of 28.96 crore towards the compensation on NPV (net present value) of 308.52 hectares of forest land in Malangtoli iron ore mines over total mining lease area of 459 hectares in Keonjhar district.
He has requested the State government mines department to issue necessary directives for execution of the lease deed before the January 11 deadline.
“While the companies are all out to protect their interest in retaining the mine, the high-level inter-departmental committee in New Delhi has turned down the Screening Committee recommendation to allow Bhushan Steel to use the iron ore mine of OSIS as it can be challenged under the recently amended Mines and Mineral (Regulation and Development) Act”, sources said.
“The IDC, which is expected to take a final call early next week, has recommended to auction the iron ore mine with reserves worth about INR 3,000-4,000 crore”, said the official.
~Sourced~
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