The joint venture between the public sector iron ore mining company KIOCL (Kudremukh Iron Ore Company Ltd) and West Bengal Mineral Development & Trading Corporation (WBMDTC) is gaining pace as the process for formation of a special purpose vehicle (SPV) has already begun.
"The joint agreement will take shape soon with the formation of a SPV. The process to set up the joint venture company is already in progress and soon it will be completed," KIOCL Chairman and Managing Director Malay Chatterjee told PTI when asked about the current status.
Though the name of the SPV is yet to be decided, KIOCL will own 49 per cent shares while WBMDTC will have 51 per cent," he said.
Once the company is floated, a joint team will be formed for the iron ore exploration activity in Bengal, Chatterjee said.
KIOCL had joined hands with the WBMDTC to form a Rs 850 crore joint venture for exploration, extraction and beneficiation of iron ore for the first time in the state.
Lack of iron ore in Bengal has been a major stumbling block for setting up of steel projects in the state, thus forcing investors to move to neighbouring Odhisa and Jharkhand.
The mega steel project of JSW in Bengal could not take off due to issues of raw material linkages. These factors encouraged the state leadership to go for an aggressive exploration for iron ore in the state.
Geological findings indicate that areas adjoining Jharkhand such as Purulia, Bankura and Belpahari in West Bengal hold significant potential for iron ore reserves, WBMDTC officials said.
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