Iron-ore exports to Japan and South Korea under the long Term Agreement (lTA) are largely made in the country from NMDC ltd’s mines in Bailadila, Chhattisgarh, officials stated. The export of iron-ore is presently under Open General license (OGl). High-grade iron-ore (+64% Fe) is canalised through MMTC ltd. Exports are determined by availability and international market situations. The Central Government has long Term Agreements (lTAs) for supply of high grade iron-ore to Japan and South Korea through MMTC ltd.
A proposal for renewal of lTAs (for 3 years w.e.f April 1, 2015) is under way. Negotiations on quantity to be supplied and price thereof, shall commence after approval of renewal of lTAs. This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Nirmala Sitharaman in a written reply in Rajya Sabha. Nearly 23.24 per cent of the country’s iron-ore reserve are situated in Chhattisgarh, and a major part of this reserve is found in Bailadila (Dantewada) and Raoghat.
This is the reason why there has been a prolonged demand since more than 50 years to establish a steel plant in this region of Chhattisgarh. Keeping in view this long-pending demand, NMDC ltd has started construction of Steel Plant in Nagarnar area of Jagdalpur, which is underway at an expedited pace. On the other side, an Ultra Mega Steel Plant is also ready to come up, as a joint undertaking in Bastar division. Chhattisgarh had only three ‘Non Working’ iron ore mines out of 15 as on April 15, 2015 in the State.
The state-wise details of Working and Non-working mines of iron ore as on April 15, 2015 are as follows- Chhattisgarh- Working (15), Non Working (3) Andhra Pradesh Working (42), Non Working (20), Goa Non Working ( 330), Jharkhand Working (11), Non Working (46), Karnataka Working (26), Non Working (69), Madhya Pradesh Working (33), Non Working ( 3) , Maharashtra Working (14), Non Working (12),Odisha Working (37), Non Working (106), Rajasthan Working( 15) Non Working (2), Telangana Working (4), Non Working (5).
This was informed by Union Minister of State for Mines and Steel Vishnu Deo Sai in the lok Sabha. Chhattisgarh is set to earn estimated revenue of Rs 51,596 crore from its five mines auctioned among 29 in the country under the provisions of Coal Mines (Special Provisions) Act, 2015 during the mining lease period. The specified end-users of the mines are in the non-regulated sector. The mines are Chotia, Gare Palma IV-4, Gare Palma IV-5, Gare Palma IV-7, Gare-Palma Sector-IV/8.
So far 29 coal mines have been auctioned under the provisions of Coal Mines (Special Provisions) Act, 2015 and the Rules made thereunder. This was stated by Piyush Goyal, Union Minister of State (Independent Charge) for Power, Coal & New and Renewable Energy in a written reply to a question in the lok Sabha. The auction process for non-regulated sector viz. Iron and Steel, Cement and Captive Power was based on forward bidding process where bidders had to submit their final price offer above the applicable floor price. In case of Power sector which is a regulated one, reverse bidding methodology was adopted where bidders had to submit bids below the applicable ceiling price, which shall be taken as fuel cost in determination of power tariff.
In case, bid price reaches Rs zero in reverse bidding, the bidding is based on additional premium payable to the concerned State Government, over and above the fixed reserve price of Rs 100 per tonne, he said. Goyal further stated that revenue which would accrue to the coal bearing State Government concerned comprises of Upfront payment as prescribed in the tender document, Auction proceeds and Royalty on per tonne of coal production. In addition, an estimated amount of Rs. 1,41,854 crores would accrue to coal bearing States from allotment of 38 coal mines to Central and State PSU’s, he said.
The Minister further stated that out of these 29 coal mines, 16 are operational coal mines included in Schedule-II of the Act and 13 are non-operational included in Schedule-III of the Act. Milestones for development and production of coal from the auctioned coal mines have been prescribed under the Coal Mines Development and Production Agreement signed with the Successful Bidder.