Nation Current Affairs 01 Oct 2016 New Mines and Minera ...

New Mines and Minerals Act hits Visakhapatnam’s RINL

DECCAN CHRONICLE.
Published Oct 1, 2016, 7:17 am IST
Updated Oct 1, 2016, 7:30 am IST
If the company got captive mines, losses could have been reduced.
RINL also picked up majority equity in Eastern Investments Limited after paying Rs 360.30 crore in 2010, getting mines in Odisha.
 RINL also picked up majority equity in Eastern Investments Limited after paying Rs 360.30 crore in 2010, getting mines in Odisha.

Visakhapatnam: A new Mines and Minerals Act had come has a hindrance to the Vizag-based state-run Navaratna steelmaker RINL’s pursuit to secure captive iron ore mines.

RINL had incurred a loss of Rs 1,421 crore in the 2015-16 financial year and the company is expected to registered loss in the present quarter also. If RINL had captive mines of iron ore which is the key raw material for steel production, the losses could have been less. RINL suffered loss for the first time in the last 14 years after it turned around during 2002-03.  

 

As per the conservative estimates while the steel plants that have captive mines spend only 30 percent of the production cost on iron ore RINL spends 60 per cent due to non-availability of these mines. RINL also lost once allotted mines at Bayyaram to Telangana.

RINL had filed 29 applications for allotment of iron ore mines in various states. Out of these applications Letter of Intent (LOI) has been given by Government of Rajasthan for one iron ore block in Banera tehsil, Bhilwara district of Rajasthan and the rest of the applications became ineligible subsequent to the enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2015.

 

“Prior to amendment to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), Visakhapatnam Steel Plant (VSP) had filed 29 applications for allotment of iron ore mines in various States out of which Letter of Intent has been given by government of Rajasthan for one Iron Ore Block in Banera tehsil, Bhilwara district of Rajasthan. The rest of the applications became ineligible subsequent to the enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2015,” said Union minister of state for steel, Vishnu Deo Sai in the Parliament during the last sessions to a question raised by Rajya Sabha member V. Vijayasai Reddy of YSRC.   

 

RINL is also looking at having a joint venture with the AP Mineral Development Corporation to explore mining blocks in Kukunoor of West Godavari district for which Union steel ministry has been approached.

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