Coal India Ltd has urged the Madhya Pradesh government to clear its Rs 900 crore dues. The coal ministry had also written to chief minister Digvijay Singh, Union coal and mines minister Ravi Shankar Prasad told Business Standard here today.
Various state governments owed Rs 4,000 crore to the coal company and the ministry was trying for the early recovery of dues, Prasad said.
The coal company had come out of the red and registered a profit of Rs 1,600 crore during 2001-02, he said.
The minister said the royalty on coal had been revised last month. "The hike in coal royalty will increase the cost of electricity generated by thermal power stations," he added.
On the plan to boost diamond and pig iron trade, Prasad said: "The diamond and pig iron mining is another priority area for my ministry. The central government plans to boost stone mining activities in Chhattisgarh, Madhya Pradesh, Maharashtra, Orissa and Karnataka."
Prasad said companies, like De Beers, had been granted reconnaissance permit to explore diamond in Chhattisgarh.
De Beers uses satellite imagery and aerial photography as supporting tools for location of precious stones and minerals. It will help reduce delays in the exploration and mining.
"The government is planning to set up a diamond trading centre, or diamond bourse, in Mumbai in collaboration with the private sector," he remarked.
The government would extend financial assistance to domestic diamantaires to set up diamond cutting and polishing centres abroad and for direct sourcing of rough diamonds from Canada and Russia.
Domestic diamantaires currently source rough diamonds from De Beers, which controls about 80 per cent of diamond mines in South Africa, Botswana and Namibia through long-term lease agreements.
"We want to utilise the iron ore tailings from Bailadila mines and National Mineral Development Corporation Ltd (NMDC) will set up a pig iron plant at Nagarnar in Bastar district of Chhattisgarh," the minister added.
According to state government officials, the Chhattisgarh government has acquired and handed over 400 acres of land to the corporation.
The corporation will use Romelt technology from Russia to set up the plant.
The Rs 300-crore plant, with an initial capacity of 0.3 metric tonne per annum, is likely to be commissioned by 2004.
