Production of state-run steel companies – Steel Authority of India (SAIL) and Rashtriya Ispat Nigam (RINL) – is not affected owing to scarcity of iron ore or coking coal.
Minister of State for Commerce & Industry, D Purandeswari informed the Lok Sabha. SAIL has been allocated iron ore mines, coal mines and flux mines for captive use. The company is meeting its iron ore requirement through captive sources.
Owing to limited availability of coking coal of desired quality from indigenous sources, about 75 percent of its requirement of coking coal is presently being met through imports and the rest through captive mines and domestic sources.
RINL has long term arrangements for supply of iron ore from NMDC and with international suppliers for supply of coal. Therefore, supply of raw material has not been adversely affecting the production capacity of these public sector steel companies.
A Special Purpose Vehicle (SPV) namely International Coal Ventures (P) (ICVL) has been set up for the purpose of acquisition of coal assets abroad. The promoter companies of ICVL are SAIL, Coal India (CIL), RINL, NMDC and NTPC.
The main target countries of ICVL are Australia, Indonesia, Mozambique, USA and Canada. Apart from above, ICVL is also examining proposals of coal assets from Colombia, South Africa and Russia.
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