Coal India Ltd, which has turned black last fiscal, has written to the Madhya Pradesh government to pay its dues of Rs 900 crore. Different states owe Rs 4,000 crore to the company, coal and mines minister Ravishankar Prasad said here.
The minister said his ministry would make efforts to recover these dues. As part of these efforts, the ministry had written to MP chief minister Digvijay Singh to ensure early payment, Prasad said. As much as 50 per cent of Rs 4,000 crore fell under the disputed category, he added.
Asked about the demand for revision of coal royalty by different states, he said the royalty had been revised last month. "One should not forget that the hike in the coal royalty also increases the rate of power generated by thermal stations", he added.
The public sector company has come out of the red during 2001-02 ended March 31, reporting a net profit of Rs 1,600 crore.
Speaking about the Centre's plan to boost diamond and pig iron trade, Prasad said, "Diamond and pig iron will be another priority area for the ministry and Centre has plans to set up stone mining activities in Chhattisgarh, Madhya Pradesh, Maharashtra, Orissa and Karnataka."
He said, "We want to utilise the iron ore tailings from Bailadila mines and National Mineral Development Corporation Ltd, will set up a pig iron plant at Nagarnar in Bastar district of Chhattisgarh."
While the ministry sources present here informed that the Chhattisgarh government has acquired a land area of 400 acres and has handed over it to the corporation. The corporation work will be completed by the end of the year 2004, they said.
The corporation will set up the plan by using Romelt technology from Russia with an initial capacity of 0.3 mtpa.
"The cost of the plant is about Rs 300 crore." said the minister. While informing about the plans of the Central government to boost diamond mining, Prasad said, "South African companies such as De Beers and others have granted reconnaissance permit to explore diamond in Chhattisgarh. We are planning to set up a diamond trading centre or diamond bourse in Mumbai in collaboration with private sector."
Prasad said the government has also decided to extend financial assistance to domestic diamantaires to set up cut and polish centres abroad and direct sourcing of rough diamonds from overseas mining blocks in Canada and Russia.
The Indian diamantaires currently source rough diamonds from De-Beers, which controls about 80 per cent of diamond mines in South Africa, Botswana, Namibia and others through long-term lease agreements.
The company uses satellite imagery and aerial photography as a supporting tool for location of precious stones and minerals as recommended by Geological Survey of India will help cut delays in the exploration and mining.
