In what may slow down the government-owned Rashtriya Ispat Nigam?s (RINL?s) expansion plans, Orissa government has asked the steelmaker to alter its applications for mining leases and prospecting licences with some value-addition plans for the state. This may affect RINL?s plans to add 3.3 million tonne (mt) capacity by the end of this fiscal.
An RINL official said that the company has already filed fresh applications and is hopeful that ?something would work out soon?.
RINL is one of the PSUs on the disinvestment line-up of the government for 2012-13. The Orissa government had earlier rejected all RINL?s pending applications for mining leases and prospecting on the ground that it has no plans of value-addition within the confines of the state.
When contacted, the company CMD, AP Choudhary, said, ?We have reapplied for licences. We are keen on value-addition (in Orissa) too and do not mind setting up a steel or pallet plant in the state if the mines allocated are good.?
RINL plans to increase its capacity to 6.3 million tonne (mt) by March 2013 from 3 mt at present. It also plans to add another 1 mt through modernisation of its existing facilities and another 4 mt in the second phase of its expansion beginning the next fiscal.
At present, RINL does not have any captive iron ore mine. It has tied up with NMDC for supply of up to 7.3 mt iron ore, while 80% of its coking coal requirement is met through imports.
The company has been trying desperately to secure some mining leases of coking coal and iron ore blocks so as to fast-track its expansion. It has approached many states and has also sought the Union steel ministry?s support to get a few mines allocated.