"A sum of Rs 72,000 crore is being invested to increase the overall capacity from 13.82 million tonnes to 23.46 million tonnes and we have already placed orders worth Rs 58,000 crore till January last," he said.
Out of Rs 72,000 crore, Rs 10,284 crore would be used for development of SAIL mines under Raw Material Division (RMD) to increase the production of iron ore. The RMD, which runs seven captive iron-more mines at Kiriburu, Meghahatuburu, Gua and Chiria in Jharkhand, and Bolani, Barsua and Kalta in Odisha, is working on the modernisation and capacity expansion of mines in the Eastern part of the country, Verma said. SAIL will invest Rs 10,284 crore for development of mines under RMD as well as Bhillai to cater to its increased iron-ore requirements, he said.
Of the total investment, he said, SAIL will pump in Rs 940 crore to increase the capacity of Kiriburu mines from 4.25 million tonnes per annum to 5.50 million tonnes per annum. Another Rs 900 crore will be invested on adjoining Meghahatuburu mines in West Singhbhum district of Jharkhand to increase capacity from 3 million tonnes per annum (MTPA) to 6.50 million tonnes per annum. Rs 1091 crore will be invested for enhancing the capacity of the Bolani Mines from 4 MTPA to 10 MTPA.
He said jobs for most of the packages of these projects have already been awarded and are likely to be completed by 2013-14. Besides, the mining in Gua Mines in West Singhbhum district, which remained closed since 2011, is likely to resume soon, Verma said. Gua Mine will be developed up to 10 MTPA capacity along with installation of beneficiation and pelletisation facilities with an investment of Rs 3,000 crore, Verma said after visiting Kiriburu and Meghahatuburu mine for the first time.
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