The Chhattisgarh State government and the Centre have allocated a lucrative captive Eklama iron ore block to Steel Authority of India (SAIL). The company managed to get the block near Bhilai Steel Plant, the flagship unit of company. SAIL will be forming a joint venture with Chhattisgarh Mineral Development Corporation to develop the mines.
The Eklama iron ore block reserves is estimated to be around 100 million tonnes (MT) and is likely to compensate the company’s tardy progress in development of its green field mines at Rowghat. The development work in Rowghat has been thwarted due to repeated Maoist threats. The company has now decided to take up the Rowghat project only under special security cover provided by the union home ministry.
To develop the Rowghat mine the company had planned to invest around Rs 5,000 crore including a 90-km railway line and had earlier hoped to produce about 14 MT of iron ore from Rowghat, beginning 2015.
