RINL to invest Rs.1,000 cr. for developing mines

Special Correspondent
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A.P. Choudhary
A.P. Choudhary

Rashtriya Ispat Nigam Limited Chairman-cum-Managing Director A.P. Choudhary on Thursday hailed the State government’s decision to allot captive iron ore mines at Bayyaram and other areas in Telangana to Visakhapatnam Steel Plant.

He said RINL, the corporate entity of VSP, would invest around Rs.1,000 crore for the development of the mines being allotted to it. This would create employment for around 1,000 people, both direct and indirect.

Mr. Choudhary requested the State government to take forward the proposal to Central government as early as possible for getting the necessary clearances from the Ministry of Mines. Chief Minister N. Kiran Kumar Reddy on Tuesday cleared the file allotting mines in an area of 2,500 hectares at Guduru in Warangal, another 2,500 hectares at Bayyaram in Khammam and 342 hectares at Bheemadevarapalli in Karimnagar. RINL is the only major steel producer in the country without captive mines.

Describing the State government’s initiative as a ‘historic moment’ for RINL, he recalled positive response given by the Chief Minister right from September, 2011 till date whenever the management approached him for allotment of captive mines.

Mr. Choudhary said the allotment would strengthen RINL’s plan to become 20 million tonne plant, the largest plant at a single location. VSP at present is in advance stage of completing its expansion from three million tonne to 6.3 million tonne at a cost of Rs.12,500 crore. The company sources iron ore from NMDC’s Bailadilla mines. RINL recognised union said the allotment of Obulapuram mines would benefit VSP.

State urged to forward the proposal allotting captive iron ore mines at Bayyaram and other areas in Telangana to VSP, to the Centre at the earliest



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