India’s leading steel producer, Steel Authority of India’s (SAIL) captive iron ore output will get affected by the blanket ban on mining in Odisha as proposed by the M B Shah Commission. The entity is expected to lose 4 million tonne of captive iron ore output, because of this ban.
If captive mining is suspended indefinitely, SAIL will experience a shortage of iron ore, as iron ore for SAIL’s Rourkela Steel Plant (RSP) is supplied from its Bolani and Barsuan mines in Odisha. So, the company will confront a major problem in operating its steel mill in Rourkela. Though, the company has mines in the nearby state of Jharkhand and can feed RSP, transportation costs will be a major constraint.
