Coal India Ltd (CIL) has agreed to let JSW Steel use rail infrastructure of its arm CCL so that the private firm is able to mine and transport coal from a Jharkhand block allocated to it for captive use.
The nod follows a meeting of a high-level panel on clearing bottlenecks impeding steel projects.
"CIL has given its consent to allow JSW Steel to use defunct rail infrastructure of its arm Central Coalfields Ltd (CCL) for developing Rohne Coal block in Jharkhand," said a Steel Ministry official who attended an Inter-Ministerial Group (IMG) meeting to expedite steel projects.
The official said that the Coal Ministry representatives who attended the meeting have assured the IMG that a formal communication on the decision will be sent to the JSW Steel.
JSW Steel had sought permission from CCL, which has its own rail infrastructure in Jharkhand to transport coal. Rohne block, with reserves of 173 million tonnes (MT), was allotted to JSW Steel in June 2008 for use in a sponge iron plant.
Earlier, the Steel Ministry has asked the Coal Ministry to look into the issue and expedite it.
JSW Steel has signed a memorandum of understanding (MoU) with Jharkhand government for setting up a 10 MT sponge iron plant there at an estimated investment of Rs 35,000 crore. The company plans to meet the coal requirement of the proposed plant through the coal mine allocated for captive use.
The IMG to review the progress of coal blocks earlier this year had decided to give time to JSW Steel to obtain final forest clearance for developing the block.
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