New Delhi | Jun 24, 2015: The government today approved the renewal of an agreement to supply up to 16.5 million tonnes (mt) of high-grade iron ore to steel plants in Japan and South Korea over three years till March 2018.
"The cabinet, chaired by Prime Minister Narendra Modi, has given its approval to renew long-term agreement with Japanese and South Korean steel mills for supply of high-grade Indian iron ore, during the three year period from April, 2015 to March, 2018," communication and IT minister Ravi Shankar Prasad told reporters after the cabinet meeting.
Under the agreement, around 3.8mt to 5.5mt of iron ore will be supplied every year primarily from the mines of the National Mineral Development Corporation (NMDC), an official statement said.
"The contract will be executed by the Metals and Minerals Trading Corporation of India Ltd (MMTC) under the department of commerce," it added.
Officials said iron ore, having 64 per cent ferrous content, or high-grade lumps, would be sourced from NMDC's mines at Bailadila in Chhattisgarh and would be exported through MMTC.
India has been supplying high-grade iron ore to Japan and South Korea under long-term agreements for the last four to five decades, the statement said.
The cabinet has approved the revised cost estimate of Rs 81,459 crore for the eastern and western dedicated freight corridors, including land costs and financing plan.
The revised estimate comprises the construction cost of Rs 73,392 crore.
In 2008, the government had estimated the construction cost of the two corridors, excluding land and the Sonnagar-Dankuni section, which is to be implemented through public-private partnership, at Rs 28,181 crore. The eastern corridor was expected to cost Rs 11,589 crore and the western corridor Rs 16,592 crore.
(Source: http://www.telegraphindia.com/)