Sail plans Rs 1,800cr spend in Chiria, J'khand

On the eve of LN Mittal's meeting with central ministers in Delhi, Steel Authority of India (Sail) has come out with an investment plan for development of Chiria mines, a Mittal Steel target for its proposed steel plant in Jharkhand.

Sail today announced an investment of Rs 1,800 crore for development and mechanisation of Chiria mines. The steel PSU has already embarked on environment impact assessment study (EIA), preparation of detailed project report and mining plans.

Sources in SAIL raw material division said, the EIA study had been completed and an application had been made to the Jharkhand State Pollution Control Board for 'no objection certificate'.

Chiria happened to be a critical issue for Mittal Steel's project in Jharkhand. Last year, prior to signing the memorandum of understanding (MoU) for the 12 million tonne steel plant, Jharkhand government had indicated a part of Chiria to be allocated to Mittal Steel.

Currently under litigation, Chiria also happens to be one of the few known deposits in Jharkhand. With proven reserves of around 1.8 billion tonne, Chiria happens to be Asia's largest iron ore belt.

Sail sources said, last year Chiria's production was to the tune of 0.5 million tonne and this year it would be 0.6 million tonne. Sources said, Chiria would cater to Bokaro and Burnpur units of Sail.