Steel Authority of India Ltd (SAIL) will invest Rs 60,000 crore to set up a 15-million-tonne greenfield steel plant in Jharkhand.
?SAIL has offered to set up a 15-million-tonne steel plant in Jharkhand with an estimated investment of Rs 60,000 crore and may soon sign a memorandum of understanding,? steel minister Ram Vilas Paswan told FE.
However, the offer comes with rider. SAIL has made it clear to the state government that it would invest only if the state government withdrew the petition against the renewal of Chiria iron ore mining leases in the steel major?s favour.
The Jharkhand government had filed a petition against the decision of the mining tribunal to consider the renewal of the Chiria mines lease to SAIL and the matter is sub-judice at present.
?SAIL is likely to sign an MoU with the state only if it gave a nod in its favour,? added Paswan. SAIL also plans a brownfield expansion at its Bokaro steel plant.
However, Arcelor-Mittal, the world?s largest steel producer, has also signed an MoU with the Jharkhand government to set up a 12-mt steel plant with an estimated investment of Rs 40,000 crore. The state government in turn has promised Arcelor-Mittal the Chiria iron ore mines lease.
Chiria iron ore mines have an estimated reserve of 2 billion tonne and is supposed to have good quality iron ore. The state government is ready to give 1 billion tonne iron ore to SAIL from the Chiria iron ore block and keep the remaining 1 billion tonne for Arcelor-Mittal.
However, SAIL has declined
the offer saying the amount would be un-sufficient for its future plans. To break the deadlock and reach an out-of-court settlement, Prime Minister Manmohan Singh has urged the ministry of mines to pursue the matter with all parties concerned. The ministry of mines has convened a series of meeting on this issue but so far has been unable to break the deadlock.