NEW DELHI | Jan 07, 2016: The central and Odisha governments have in-principle approved the allocation of Pottangi mines for the state-run aluminium maker Nalco and prospecting licence (PL) of Thakurani mines for steel maker SAIL.

The approvals came at a meeting between Steel and Mines Minister Narendra Singh Tomar and Odisha Chief Minister Naveen Patnaik. Tomar is on a two-day visit to the state.

"In-principle approval for allocation of Pottangi bauxite mines to Nalco. This is critical to the expansion of Damanjori unit capacity by 1 million tonnes at an investment of around Rs 6,000 crore," an official statement said today.

The in-principle approval was also accorded to PL for Thakurani mines block-A to SAIL. Concrete action is to be taken in a month or two, it added.

It also called for expediting setting up of District Mineral Foundations in different districts, in addition to the 12 where DMFs are in place. Efforts are on to set up DMFs in the remaining districts and amending the rules this month.

Patnaik also assured Tomar on extending full support of Mineral Exploration Corporation Limited (MECL) in facilitating G-2 level exploration of mine blocks, the statement added.

Consideration for royalty of iron ore lumps in line with the practice in other states for revival of the steel and mining sector was also taken up at the meeting. At present lumps and fines are being charged same royalty rates in Odisha.

Both the leaders also discussed speeding up the renewal of pending mining leases (MLs). Only 80 out of 400 major mineral mines in Odisha are operational at present.

Patnaik sought the Centre's support on approval under Section-6 (1) for the grant of mineral concessions for 3,000-hectare Karlapet Bauxite deposit in Kalahandi district and setting up of an aluminium Park by Nalco in Odisha.

Tomar assured him of all possible help in these areas, the statement said.

(Source: http://economictimes.indiatimes.com/)