Country's largest steel producer Sail has evinced interest in developing the Jharia coal mines in Jharkhand, which is estimated to have over eight billion tons of high-grade coking coal reserves.
Asked if Sail would develop the Jharia coal mines alone or in consortium with other steel producers, the company's Chairman S K Roongta responded in the positive.
"Yes," he said on the sidelines of the IIFT-PHD-CDC National Consulting Symposium 2008 here, adding that the matters related to mining in Jharia is with Coal and Steel Ministries.
Other than iron ore, coking coal is a vital raw material used for steel making.
Sail is not the lone steel producer willing to develop the Jharia coal mine, which has been burning for several decades and has lead to gutting down of around 1.8 billion tonnes of coking coal reserve due to heat in the earth crust.
Last week, JSW Steel Vice-Chairman and Managing Director Sajjan Jindal had said that steel producers could rehabilitate people adjoining Jharia and develop the mine on a public-private-partnership model if government allowed it to.
"Give us 15,000 acres of land and we will set up a township on the lines of Chandigarh to rehabilitate people of the area," a JSW Steel spokesperson said.
The development of Jharia mines has been in limbo so far due to the rehabilitation issue of people from the region.
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The Jharkhand Cabinet has recently approved the Jharia Action Plan, following which Coal India may now initiate steps for relocation of people who are opposed to it.
Industry sources said, Sail and JSW Steel plan to call on Steel Secretary P K Rastogi shortly to put forth the proposal of developing the Jharia mines.
The steel makers' interest in Jharia comes on the back of shooting coking coal prices in the global market, which has pushed up the alloy prices.