Capacity for Production of Sponge Iron
The Minister of Steel, Shri Beni Prasad Verma has said that the matter of allocation of coal blocks falls under the purview of Ministry of Coal. Ministry of Coal has informed that M/s Prakash Industries Ltd. has been allocated Chotia coal block on 04.09.2003 for its proposed 4 lakh tonnes per annum (LTPA) expansion capacity of sponge iron plant under Section 3(3)(a)(iii) of the Coal Mines (Nationalisation) Act, 1973. In a written reply in the Rajya Sabha today he said, Ministry of Coal has further informed that for its existing 4 LTPA capacity sponge iron project and captive power plant, the company was having coal linkage from Coal India Ltd. However, on starting production from Chotia block, the coal lifting from linkage for its existing plant was gradually reduced, synchronizing with captive production and the company requested for surrender of coal linkage and sought permission to use coal from Chotia block. This was on account of delay in developing the additional capacity of 4 LTPA. Ministry of Coal accepted the request of surrender of coal linkage for its existing sponge iron plant on 23.10.2007. Ministry of Coal has informed that M/s Prakash Industries Ltd. is bound by the terms and conditions of the allocation letter of Chotia coal block and the guidelines for allocation of captive coal block.
Shri Verma said, Iron and Steel sector is a de-regulated sector and the production of sponge iron by any unit is not regulated by the Government. However, in connection with allocation of captive coal/lignite blocks, information is compiled by the Office of the Coal Controller under Ministry of Coal on the status of the captive coal/lignite blocks and the linked end use projects and periodical review meetings are held under the Chairmanship of Additional Secretary, Ministry of Coal to review the status of the allocated coal/lignite block and associated end-use projects.
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