Jamshedpur, Oct. 2: Steel Authority of India Limited (SAIL) is all set to float a global tender for the modernisation of Chiria, considered as the largest iron ore reserve of Asia.
Sail officials said that the tender for appointing a global consultant would be floated in the next couple of days.
“All necessary nitty-gritty has been completed for issuing the global tender. SAIL has spent Rs 4 crore for preparing a detailed project report (DPR) for the modernisation of the Chiria mines,” said a senior official of SAIL, requesting anonymity.
The modernisation will involve setting-up of mechanised ore-processing and ore-benefaction plant apart from establishing mechanised washing and screening facility.
The public sector undertaking has massive plans to increase the production capacity of Chiria mines from the existing 1.5 million tonne per annum to 7 million tonne per annum in the next four years in the first phase.
For the first phase of modernisation, the PSU has earmarked Rs 2,000 crore.
Officials revealed that a total of Rs 46,000 crore would be spent for modernisation in different phases at the Chiria mines.
SAIL, which got Chiria after Indian Iron and Steel Company (IISCO) was merged with it, has the lease for about 2,000 million tonne. The rest is out of its leasehold area.
SAIL has also applied to the Jharkhand State Pollution Control Board (JSPCB) seeking an environment clearance for the modernisation of Chiria. Officials said that a public hearing would be convened by JSPCB in this regard.
Moreover, the public sector undertaking has also applied to the Jharkhand State Electricity Board (JSEB) placing a requisition of about 60 MW of electricity, which will be required for the modernisation purpose.
Jharkhand wanted to give lease to private steel makers like Mittal Steel and Tata Steel, which were eyeing the long-neglected reserves.
The ailing IISCO had never been able to develop Chiria, considered the world’s second-largest iron-ore reserve.
Presently, the iron ore produced from Chiria is supplied to Bokaro Steel Plant (BSP) and IISCO Steel Plant (ISP).