In a bid to partially meet its increased iron ore need, state-owned steel major Steel Authority of India (SAIL) is planning to build-up Bhilwara iron ore mine in Rajasthan and set up a pellet plant with 2 million tonne per annum capacity at the site. In this regard, the company will invest Rs 800 crore.
The company will start looking for required approval soon after getting the Letter of Intent (LoI) from Rajasthan government and production from the mine is likely to start in 3-4 years.
The company in general requires 1.6 tonnes of iron ore for producing every tonnes of steel and the Bhilwara mine will help the company will to partially meet its increased iron ore need. Though, the company never had iron ore problem. Last year, it had produced 21.48 MT ore to make 13.4 mt crude steel.
