Bhubaneswar: In a major blow to Rashtriya Ispat Nigam Ltd (RINL), popularly known as Vizag Steel, Odisha Government has turned down it’s application for allotment of iron ore block in the State.
The state government has communicated its decision to the steel maker, specifying its inability to allot iron ore mines since it has already decided in a resolution dated September 18, 2012, that gives the state-owned Orissa Mining Corporation (OMC) first right over all the balance mineral areas containing major minerals such as iron ore, bauxite and chromite.
OMC would make a fair and equitable distribution of minerals amongst the user industries and would supply the required quantum of raw materials to various industries for higher value addition in the state through appropriate long-term arrangements.
It is noteworhty to mention that, RINL, the second largest state-owned steel maker in the country after Steel Authority of India Ltd (Sail), has a steel making capacity of three (3) million tonne per annum (mtpa). The company, which had clocked its best-ever annual turnover in 2011-12 at Rs 14,457 crore, is in final stages of increasing its capacity to 6.3 mtpa.
Source: 360 NS