SAIL has got the clearance both from the central and the Madhya Pradesh government for undertaking the prospecting job for the Rowghat mine, the BSP managing director, Vikrant Gujral, said. SAIL, he said, could now go ahead with prospecting and make detailed project report for the development of the captive mine which is likely to involve an expenditure of around Rs 700-800 crore.

The environment and forest ministry has opposed the proposal on the ground that it would involve about 1000 hectares of prime forest land. The proposal had been pending for over 10 years. Referring to the depleting iron ore reserve in the BSP's existing captive iron ore mines at Dalli and Rajhara, Gujral said that Bhilai steel plant which annually consumed seven million tonnes of iron ore could managewith the existing reserve till 2001-2.

If the Rowghat mine, which is crucial for the survival of BSP, was not developed by then, the BSP would face problem, he said adding that in that case the shortfall would have to be met from the sail's iron ore mines in Kiriburu mines.

Gujral said that the final location survey for the railway line from Dalli-Rajhara to Jagdalpur was complete. Sail would now have joint meetings with the state government and railways for laying the railway line required for the new mining project.

The cost for laying the railway lines, he said, would be shared between SAIL, Railways, MP government and National Mineral Development Corporation.Turning to the performance of the BSP, the Gujral said that Bhilai steel plant would end the current financial year with profit in spite of the sluggish market condition. He, however, admitted that in the first quarter although the plant had made profit it was not to the level as expected.

Cost reduction and export would be the thrust areasfor BSP as it made a target of Rs 200 crore for cost cutting in the current fiscal. The BSP MD also said that Bhilai's share in export would constitute over 70 per cent of SAIL's export target of one million tonne in 1998-99.

Gujral, a senior member of the SAIL board, expressed hope that buoyancy in the market would return with the government decision to tone up infrastructure sector.

Stating that power, port, road, water supply and transmission line would generate steel demand, he said that the sail was getting a number of enquiries from different sectors for the supply of steel products.