InFocusManufacturingNews

Steel Companies May be Permitted to Divert Ore from Captive Mines to Other Units

Sharing is caring!

In a big boost to the steel sector, the government plans to allow integrated steel producers to divert a portion of iron ore from their captive mines for use by other joint venture entities.

Existing regulations don’t allow diversion of minerals from captive blocks for use by any entity other than the one that has been allotted the mine. Only recently, the mines ministry has permitted SAIL to sell a portion of iron ore from their captive mines in the open market to boost its revenue.

As per the new reform initiative proposed for mining, the Centre would permit steel producers to use an identified portion of iron ore from their captive mines allotted prior to the auction regime for use by any other of their entities or joint venture operations.

In case of a JV, the original lessee of the mine (the company that was originally allotted the captive mine) should at least hold 26 per cent equity.

The changes would benefit companies such as SAIL, Tata Steel, Vedanta Ltd and JSW Steel, all of whom have operational captive iron ore mines.

Public sector steel major SAIL has over two dozen iron ore mines in Jharkhand, Odisha and Chhattisgarh. Similarly, Tata Steel has also got several mines in all the three mineral rich states.

SMEStreet Desk

SMEStreet is fast growing platform dedicated to entrepreneurs from small and medium sized businesses (SMEs). Committed to facilitate Knowledge & Networking for Business Growth, SMEStreet offers value added content which shows the actual voice of Indian MSMEs.

Related Articles

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: