GOVERNMENT OF INDIA
Ministry of Steel 

RAJYA SABHA
UNSTARRED QUESTION NO. 1650
ANSWERED ON JULY 23, 2014 

QUESTION
Iron Ore Mining Area Allotted to VISP/SAIL

1650. SHRI RAJEEV CHANDRASEKHAR:

 Will the Minister of STEEL be pleased to state;

(a)   whether an iron ore mining area for the Visvesvaraya Iron and Steel Plant (VISP) at Bhadravathi, Karnataka with sufficient reserves for meeting iron ore requirement, has been allotted to VISP/SAIL;

(b)   if so, the details thereof;

(c)    the details of the status of provision of a captive iron ore mine for VISP and steps taken for modernization and production of high quality alloy steel in VISP;

(d)   whether Government proposes to privatize VISP; and

(e)   if so, the steps being taken by Government to ensure that the interests of VISP and its employees are taken care of?

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF STEEL, MINES AND LABOUR AND EMPLOYMENT
(SHRI VISHNU DEO SAI)

(a) & (b): Vide Gazette Notification dated 21.10.2011, Ministry of Mines; Government of India (GoI) reserved an area of 140 Ha in NEB Range, Bellary District, Karnataka by specifying the co-ordinates. However, the coordinates furnished and published in the Gazette Notification dated 21.10.2011 was erroneous due to lack of permanent boundary points of the adjoining mining lease at the time of filing the mining lease application. After continuous follow up, re-survey of the area was undertaken and Survey Report was submitted to Director of Mines & Geology, Karnataka on 12.3.2014. Now the proposal for grant of mining lease is pending with Secretary (Mines, Textile & SSI), Govt. of Karnataka for scrutiny.

(c): SAIL/VISP had also applied for iron ore mining lease over an extent of 245.20 Ha in Block No. 13/1 of Ramanadurg Area in November, 2013, which is still under consideration of the state Government. At VISP, Bhadravati, SAIL is continually investing for overall growth & improving profitability of the Plant. SAIL has already implemented a 350x350 mm single strand bloom caster with 1,25,000T annual capacity and one 30T Pusher type Reheating Furnace for Primary Mill. However, major future investments at VISP shall be considered after the captive mine becomes operational.

(d) & (e): SAIL has invited Expression of Interest (EOI) from Interested Parties willing to enter into a Joint Venture with Steel Authority of India Limited (SAIL) for manufacture of steel and related products at VISP, Bhadravati, Karnataka. SAIL, intends to induct a Strategic Alliance Partner to form a Joint Venture Company which shall carry on the business relating to manufacture of steel and related products at VISP, Bhadravati. SAIL shall endeavour to ensure that interest of the employees is taken care of in case of formation of a Joint Venture company.