Centre clears lease for Ispat

July 10, 2008

July 10th (The Telegraph) – The Centre has awarded an iron ore mining lease to Ispat Industries Ltd controlled by Pramod Mittal and Vinod Mittal, brothers of steel tycoon L.N. Mittal.

The group, which has a 3MTPA plant at Dolvi in Maharashtra and downstream facility (that has cold rolling mill producing galvanised steel and colour coated steel products) at Kalmeshwar near Nagpur, has been allotted Latuaburu iron ore reserves in West Singhbhum district.

Sources in state mines and geology department said the proposed reserve has 150MT to 200MT of medium-grade iron ore spread over an area of 500 acres.

“We had sent the recommendations to the Centre for providing an iron ore mining lease to Ispat Industries Ltd few months ago. We have got the information that it has been cleared. The official communiqué is yet to reach us, though,” said director of state mines and geology department B.B. Singh.

The company had signed an MoU with the state government in 2006-07 fiscal to set up a 2.8MTPA steel plant and a power plant with an overall investment of about Rs 8,000 crore. The power plant was supposed to be run by Ispat Energy Ltd, a sister concern of the group.

The group is yet to start groundwork as the site for setting up the steel and power plant has not been decided yet.

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