SAIL has been awarded six mining leases by the Odisha Government, out of which only two are operational.
Chief Secretary of Odisha, J K Mohapatra, along with Union Steel Secretary, G Mohan Kumar, has asked SAIL to raise the annual production capacity of its Rourkela Steel Plant (RSP) by 2017, in a meeting held at Bhubaneswar. SAIL needs to scale up the capacity of RSP to 10 MnT by March, 2017. The Odisha government has awarded about 6 Iron ore mines to the PSU out of which only two are operational. Hence, in order to gain more mines the company must go for expansion. RSP, at present has the annual production capacity of 2 MnT. It is presently under ongoing expansion, with a capital outlay of INR 120 billion the capacity will expand to 4.5 MnT pa.
Odisha Government is likely to take steps to resume the mining operations in the remaining mines granted to SAIL. The meeting read, “Since SAIL has already been granted with six mining leases, actual assessment of the reserve position in these leases vis-a-vis requirement for proposed expansion of RSP should be done before application for further mineral concessions are considered.”
The pending issues of rehabilitation were also raised in the meeting along with resettlement related to RSP. The state government also said that the issues should be dealt with on the basis of priority as the district administration is facing numerous disturbances.
SAIL with the current annual production capacity is very close to reach 24 MnT from its current production capacity of 14 MnT. It further aims to reach an annual production capacity of 50 MnT by 2025.