Steel Authority of India Ltd is in the process of selecting a mine developer-cum-operator (MDO) for development of its iron-ore mines at Rowghat, Chhattisgarh and Chiria, Jharkhand to strengthen raw material security.

Speaking to shareholders at the company’s annual general meeting, SAIL Chairman CS Verma said: “In addition to selecting the MDO for Rowghat and Chiria, new iron-ore deposits are also being scouted for.

The Ministry of Mines has accorded approval for grant of mining leases for iron-ore associated minerals over an 871.38 hectare in Dhul Khera, Rajasthan, for a period of 30 years.”

Meanwhile, Verma said, the stagnant demand from the steel sector is likely set to change with the new Government placing emphasis on areas such as manufacturing and infrastructure.

Signs of change

“The signs of change to come are already reflected in the General Budget presented by the Government this year, with the announcement of initiatives such as opening up more sectors for foreign direct investment, and plans to accelerate growth in manufacturing,” said Verma.

The Chairman also told shareholders that plans are being formulated to take SAIL’s steel-making capacity to 50 million tonnes a year by 2025, for which an additional investment of ₹1,50,000 crore will be required.

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