Bhushan Steel Limited (BSL), which is setting up a 3 million tonne steel plant at Meramundali in Dhenkanal district, has been granted prospecting license (PL) for the Marsuan iron ore mines in Keonjhar district.
The company is the first of the 11 mega steel projects (with steel output of 3 or more million tonnes per annum) in the state to be granted PL for iron ore mines. BSL had signed MoU with the Orissa government for the project in November, 2005.
The Union mines ministry has approved the recommendation of the Orissa government for issue of PL in favour of Bhushan Steel. The iron ore mines to be allotted for prospecting at Marasuan is spread over 286 hectares in three villages namely Marsuan,Tiriba and Narasinghpur in the Keonjhar district.
“ We completed the hearing of all contenders for the Marsuan iron ore mines and recommended to the Union mines ministry to approve the issue of PL in favour of Bhushan Steel”, Ashok Dalwai, commissioner-cum-secretary, steel and mines department of the Orissa government said.
It was a clear case and Bhushan Steel was the only MoU signed company to contend for the Marsuan iron ore mines. Sources said, prior approval of the Government of India (GoI) was obtained and based on the inter-se merit all the contenders were heard. Sources said, it will take about three months to complete the process for grant of PL to Bhushan steel.
The steel and mines department has moved the government for issue of terms and conditions for the PL. The area to be given for prospecting will be demarcated by the director, mines, of the Orissa government after fixing of the terms and conditions. Subsequently, the company will have to obtain the forest clearance for the PL to be operational, sources added.
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Bhushan Steel had initially signed MoU with the Orissa government for a 3 mtpa steel plant with 155 mw power plant at an investment of Rs 5828 crore. But later it proposed to step up the steel capacity to 6 million tonne which has been okayed by the High Level Clearance Authority (HLCA). The revised invement will be about Rs 8000 crore.
The company has already attained 1 million tonne capacity with annual output of 0.5 million tones of sponge iron and 0.5 million tones of steel. The investment by the company, so far, has crossed Rs 5000 crore.
While 918 persons are employed directly, more than 11,000 persons are employed indirectly in this plant. The company has contributed Rs 20.37 crore in the form of taxes and duties to the state government.