Chhattisgarh to hand over mines to SAIL

The Chhattisgarh government has decided to hand over an iron ore mine project to the state-owned Bhilai Steel Plant.

The Chhattisgarh government has decided to hand over an iron ore mine project to the state-owned Bhilai Steel Plant, whose iron ore reserves will not last over four years.

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The Rowghat iron ore mine project is seen as a lifeline for the profit making Bhilai plant.

The plant became India's largest hot metal producer in public or private sectors in fiscal 2005-06.

Rowghat has about 500 million tonnes of world's finest iron ore stocks that can easily feed the Bhilai plant for decades.

SAIL is investing Rs.130 billion as part of the plant's major expansion drive to increase by 2010 its annual production capacity to 7 million tonnes per annum from the current 5 million.