KOICL, SAIL enter into 50:50 joint venture

Kudremukh Iron Ore Company Ltd (KIOCL) along with Steel Authority of India Limited (SAIL) is planning to form a Rs 1,200 crore Joint Venture (JV) for operating 3 mines in the state of Orissa. The modalities of the JV are in process of formulation with both steel companies having a 50-50 stake in the JV.

"This is in addition to the mine which we are independently prospecting in Sundargarh district of Orissa," said P Ganesan, chairman and managing director of KIOCL.

Speaking at a press meet, he outlined the company's future plans in wake of Apex court's October 2002 ruling that gives a deadline of 31 December 2005 for closure of all mining activity in the protected area.

Saying that since the matter is sub-judice, Ganesan said that they were awaiting Supreme court's directive on the company's petition to extend the closure date by another 2 years for "ecological reasons". The Apex court directive is expected to be announced in the next few months.

On the issue that whether the company has any plans formulated for the workforce, Ganesan said that the company was concerned about the dedicated workforce and "best step would be taken, keeping their interest in mind".

As of 1 June 2005, the zero debt Public Sector Undertaking had 1,926 people on its payroll. The company's profit after tax (PAT) was Rs 649.84 crore for the financial year 2004-05 and paid a dividend of Rs 130.08 crore.