Kohinoor Steel threatens to move to MP over iron ore allotment
September 28th, 2008 | by mantrionline |FE reported that Kohinoor Steel has threatened to move to Madhya Pradesh if Jharkhand delays on its decision on allotment of iron ore mines to it. The company like several other investors has been seeking the allotment for the last 2 years.
The report cited a company spokesperson as saying that “Jharkhand needs to recognize the ability and necessity of Kohinoor Steel and act accordingly before it gets too late and the state is deprived of revenue and employment opportunities.”
The spokesperson said that “Kohinoor Steel is now inclined towards moving to Madhya Pradesh where it has met with favorable and whole hearted support by the state government for its expansion plans” adding that acquiring iron ore mining lease would bring down cost and make steel products cheaper.
The Kohinoor group has signed an MoU with the Madhya Pradesh government to invest INR 2,100 crore in that state. This includes setting up by 4 million tonnes per annum cement plant. As per report, the company has invested INR 250 crore so far by setting up by 400 tonnes per day sponge iron plant, a 17 MW power plant, a 400 tonnes per day induction furnace, a similar capacity concast billet production unit and a steel rolling mill.
Kohinoor Steel has applied for 13 captive iron ore blocks in Jharkhand. But none has been allotted so far except for having been earmarked a very small block called Tatiburu which the company says has negligible reserves and is embedded in litigations. The Jharkhand high court in an order dated April 15th 2008 is said to have pulled up the government for allotting the litigated Tatiburu mine to the company.
On the other hand, it has already been awarded a limestone mine and two manganese ore mines by Madhya Pradesh and its application for allotment of iron ore mine is said to be under final consideration.
