Kohinoor Steel has threatened to move to Madhya Pradesh if Jharkhand delays on its decision on allotment of iron ore mines to it. The company, like several other investors, has been seeking the allotment for the last two years.
“Jharkhand needs to recognise the ability and necessity of Kohinoor Steel and act accordingly before it gets too late and the state is deprived of revenue and employment opportunities,” said a company spokesperson.
The company has invested Rs 250 crore so far by setting up a 400-tonne per day (tpd) sponge iron (DRI) plant, a 17 mw power plant, a 400 tpd induction furnace, a similar capacity concast billet production unit and a steel-rolling mill.
The Kohinoor group has signed an MoU with the Madhya Pradesh government to invest Rs 2,100 crore in that state. This includes setting up a 4 million tonne per annum cement plant. However, the company has already been awarded a limestone mine and two manganese ore mines by Madhya Pradesh and its application for allotment of iron ore mine is said to be “under final consideration”.
“Kohinoor Steel is now inclined towards moving to Madhya Pradesh where it has met with favourable and whole-hearted support by the state government for its expansion plans,” said the spokesperson, adding that acquiring iron ore mining lease would bring down cost and make steel products cheaper.
Kohinoor Steel has applied for 13 captive iron ore blocks in Jharkhand. But none has been allotted so far, except for having been earmarked ‘a very small block’ called Tatiburu which the company says has “negligible reserves and is embedded in litigations.”
The Jharkhand high court, in an order dated April 15, 2008, is said to have pulled up the government for allotting the litigated Tatiburu mine to the company.
Kohinoor Steel contends there are cases where companies have not put up any plant whatsoever but have been allotted iron ore mines by the Jharkhand government.
Jharkhand government, while signing the MoU on July 2005, had also promised the company to provide basic infrastructure like road, water and power, apart from specific help for acquiring around 160 acre land for the project.
The Union ministry of coal recently allotted Kohinoor Steel the Medinirai coal block in Jharkhand, despite there being no recommendation by the state government.