Maharashtra asks centre to allocate 6 iron ore mines in Gadchiroli for MSMC

New Delhi: The State Government on Thursday sought allocation of six iron ore mines in Gadchiroli to the Maharashtra State Mining Corporation (MSMC), an official release said.

The Chief Minister Devendra Fadnavis, who made the demand during a meeting with Union Coal and Mines Minister G Kishan Reddy in Mumbai, said it would help turn the state into a green steel hub.

Follow The PSUWatch Channel on WhatsApp

Union Minister of State for Mines Satish Chandra Dubey, Maharashtra Minister of State for Mining Pankaj Bhoyar, and senior officials from the Centre and the state were present, the release said.

"If these mines are allotted to the state corporation, they can be made operational within two years and production can begin by 2030. This will help India emerge as a steel exporting nation," Fadnavis was quoted as saying.

Gadchiroli in eastern Maharashtra possesses some of the country's highest-grade iron ore reserves and has the potential to become a major industrial and steel manufacturing centre, he said, adding that it could attract investments of Rs 3 lakh crore and create lakhs of jobs.

The district has abundant iron ore reserves along with limestone and other minerals required for steel production, the chief minister pointed out.

Further, the decline of Left Wing Extremism in Gadchiroli has created a favourable environment for industrial development, he said.

The state is planning rail and freight connectivity linking Gadchiroli with Jawaharlal Nehru Port and the upcoming Vadhavan Port near Mumbai, he informed.

More than 40 mineral blocks are ready for auction in Maharashtra and the process has begun for 14 of the 34 identified blocks, Fadnavis said.

The state has set a target of producing 50 million tonnes of iron ore by 2030, he said.

The integrated steel ecosystem being developed in Maharashtra could bring down steel production costs below those in China, and several domestic and international steel producers have shown interest in investing in the Gadchiroli region where thousands of acres of land have already been acquired, the chief minister said.

Follow PSU Watch on LinkedIN

Fadnavis also pointed out that although nearly 500 mines have been auctioned across the country, only around 50 are operational because high premiums have rendered many projects commercially unviable.

Drawing a comparison with bauxite mines allotted to the Odisha State Mining Corporation, Fadnavis sought approval for around 1,300 hectares of mining area in Maharashtra.

Reddy responded positively to the demand and directed the introduction of an automated sample-testing system to address disputes over coal quality and prevent financial losses to power generation companies, the statement said.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)