Tata, Essar to get mining licenses in Bastar

Raipur, Oct 30 (UNI) The Chhattisgarh government will urge the Centre to grant prospecting licenses for iron ore mines at Bailadila to Tata Steel and Essar Steel for the captive use of their steel plants proposed to be set up in tribal Bastar region.

Briefing reporters after a cabinet meeting, Finance Minister Amar Agrawal said that the government would recommend granting a license to Tata Steel for prospecting 2,500 hectares at Bailadila Deposit Number 1, having an estimated reserve of about 150 million tones.

''A similar recommendation will be made to grant a license to Essar Steel for prospecting 2,477 ha at Bailadia Deposit Number 3, having a reserve exceeding 95 million tonnes,'' he added.

Tata Steel and Essar Steel are in the process of setting up 5-million-tonne and 3.5-million-tonne plants in Bastar and Dantewara districts respectively.

Pointing out that both companies would have to utilise ore from these mines only for the captive use of their plants, Mr Agrawal said that he felt both companies would be able to meet the demand for raw material from these mines for a period of not less than two decades.

The government had already signed a memorandum of understanding (MoU) with these companies for setting up integrated plants in Bastar region, one of the most backward scheduled tribe areas.

Besides, the government recommended granting lease of Bailadila Deposit Number 13 to the joint venture company of the National Mineral Development Corporation (NMDC) and Chhattisgarh State Mineral Development Corporation (CSMDC).

NMDC holds 51 per cent equity in the joint venture that is expected to produce 10 million tonnes annually.

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