SteelMin helping states in formation of SPVs

The Steel Ministry is in the process of facilitating setting up of special purpose vehicles (SPVs) with mineral-rich states of Odisha, Chhattisgarh, Jharkhand and Karnataka, Parliament was informed on Wednesday. Besides, state-owned iron ore miner NMDC's wholly-owned steel plant in Nagarnar (Chhattisgarh), which is being set up with an investment of Rs 15,525 crore, will be operational by December 2016, Minister of State for Steel and Mines Vishnu Deo Sai said in a written reply to the Rajya Sabha. 

"The Ministry of Steel is facilitating setting up of SPVs in mineral-rich states of Odisha, Chhattisgarh, Jharkhand and Karnataka," he added. The 

minister added that NMDC Steel, which is being developed by the state-owned iron ore miner, will produce 3 MTPA of steel.

A Parliamentary panel "strongly" reiterated its recommendation to the government to allot iron ore blocks to state-run steel major RINL to help it achieve the planned capacity addition of 20 million tonne (MT). The Parliamentary Standing Committee on Coal and Steel, chaired by Rakesh Singh, also expressed "concern" on Steel Ministry being silent on steps taken by state-owned consultant MECON to improve its performance despite fall in profit. The committee acknowledged that the plan of Rashtriya Ispat Nigam Ltd (RINL) for expansion of its steel capacity by up to 20 mt has been hit due to lack of raw material security.