The long-pending issue of Donimalai iron ore mine of NMDC Ltd, which was suspended since November 2018 has finally concluded with the government's endeavour, the Navratna public sector enterprise said on Friday.
Exercising the power under Section 31 of the MMDR Act, 1957, the Centre reached at an agreement with the state government of Karnataka and Ministry of Steel to extend the Donimalai iron ore lease.
"The decision has not only paved way for operationalisation of mine but is also a timely decision taken in a situation when steel compes are facing a shortage of iron ore supply," NMDC said in a statement.
The Donimalai iron ore mine with a total concession area of 598 hectares and estimated resource of 149 million tonnes will increase the annual iron ore production in the country by 7 million tonnes per annum.
Based on the existing high price of ore, it is expected that Donimalai iron ore mine will contribute about Rs 400 crore to the state exchequer during the ongoing financial year.
NMDC said the operationalisation of mine will contribute a total of Rs 1,100 crore to the state exchequer per annum. It will also take the country a step closer towards the government's vision to achieve 300 million tonnes per annum crude steel capacity by 2030-31.
Besides, the mine will offer direct employment to thousands of people (including the contract labours) and create indirect employment opportunity for lakhs of people.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor