Maharashtra, Dempo in iron ore mining pact

The Government of Maharashtra signed a memorandum of understanding (MoU) with the mining giant, Dempo Group of Goa, for setting up of a Rs 1,000-crore project for iron ore mining operations at Kesari-Phansawade village of Sindhudurg district in the Kokan area.

This will be the first industrial project in the district, which has no major industry.

The MoU was signed by Dempo group chairman and president Shrinivas Dempo and industry department secretary V K Jairath. Chief Minister Vilasrao Deshmukh, revenue minister Narayan Rane, industry minister Ashok Chavan, finance minister Jayant Patil and energy minister Dileep Walse-Patil were present on the occasion.

The Dempo group will also set up a plant to produce Low FE Value Bonded iron from iron ore in the district besides extracting in the mines.

Speaking on the occasion, Dempo said, "In the first phase, the Dempo group will invest Rs 350 crore and provide direct employment to around 350 persons."

The production of the Low FE Value Bonded iron is expected to start from early 2008 and in the first phase, plant will have the capacity to produce 1 million tonne per year and after the completion of both the phases, production will reach 2.25 million tonne per annum, he added.

The venture, which has been given the mega project status by the state government, will be offered sops like exemption from stamp duty, electricity duty, and local taxes.