Paquetes de Transformación

5.5.1 Infrastructure development related to iron ore mining has so far been focused primarily on the export business. This is so in case of railways and ports in particular. While there is a common use of the infrastructure not only for domestic business but also by other industries and trade, the focus on the profitable iron ore export business seems to have led to excess capacity in certain areas related to railways and ports. At the same time, lack of connectivity remains a major constraint for domestic iron ore consuming industries.

5.5.2 One of the reasons for this anomaly may be differential railway fare structure for exports and for domestic industry. Exports railway freight is almost

93 three times the domestic railway freight and this makes railway projects meant for export business more attractive. It may be, therefore, necessary to have a relook at this differential freight policy. Further, the steel industry needs to move other raw materials such as coal, limestone, dolomite, etc., apart from finished iron and steel products. Therefore, the focus needs a change.

5.5.3 Also, the issues related to infrastructure for transportation of minerals have to be examined with reference to the specific requirement of the major/large mining companies or steel producers and for, the requirement for the small and medium enterprises. Normally, the large steel and mining companies can afford to build their own mine linked infrastructure. In many ways such investments are financially viable due to the advantages from economies of scale. The smaller and medium size steel and mining units, on the other hand, cannot do so and have to depend primarily on the common infrastructure built by the government agencies.

5.5.4 Though the large mining companies and steel producers with captive mines tend to construct some of their own mine-linking infrastructure, it is often far beyond their capabilities to build the entire infrastructure they need for their business themselves. SAIL has indicated that a 3rd line between Manoharpur and Asanboni with connectivity to Chiria mines may be expeditiously built up. Similarly, there is also a requirement of doubling of Barsua-Kiriburu- Meghahatuburu and Bimlagarh-Bondamunda lines to support the movement of iron ore from their captive mines. The slow progress of work on the Dalli – Rajhara –Rowghat is a point of major concern for Bhilai Steel Plant of SAIL. SAIL has also sought connectivity between Bimlagarh and Talcher.

5.5.5 Indian steel producers procure their limestone in substantial quantities from Jaisalmer in Rajasthan. The annual movement for SAIL itself is likely to rise from the present 1.6 million tonnes to 2.5 million tonnes. The volume can increase to 4-5 million tonnes if other producers also start using these resources. Presently, limestone is carried by road from Jaisalmer upto Sanu, from where there is availability of railway line. It is desired that a 60 kilometer long railway line maybe built connecting Jaisalmer to Sanu to improve transportation of limestone in this region.

5.5.6 It is recommended that Ministry of Railways develop product-specific railway freight corridors jointly with rail users –foreign and domestic companies and Public Sector Undertakings (PSUs). A project is under consideration connecting Haridaspur and Paradip by rail at an estimated cost of Rs.560 crore in which POSCO is likely to contribute Rs.27 crore initially for its 10% stake. This will provide a dedicated rail corridor connecting its steel plant with Paradip port in consortium with PSUs and private companies like JSPL, JSL, SAIL and mining company MSPL. This project is being developed by a Special Purpose Vehicle (SPV) led by Rail Vikas Nigam Ltd. This new railway corridor will be an alternative to the Cuttack railway line which will reduce the distance and time of transportation of raw materials like iron ore and coal from Odisha‘s Keonjhar and Angul districts to the plant site.

5.5.7 Over 50 million tonnes of pelletizing capacity is also expected to be commissioned by the terminal year of the 12th Plan. These capacities are mostly

94 in the mining areas of Jharkhand, Odisha and Karnataka. The Ministry of Railways will have to rework their operational plans to see smooth movement of pellets to different sponge iron and steel plants in the country.

5.6.0 Roadways

5.6.1 Most of the highways in the steel plants and mining areas are narrow and congested. In several areas, they are not even double-laned. The quality of the roads in the mining areas is grossly inadequate to support heavy traffic and lack of funds with the concerned agencies has led to poor maintenance, further adding to the woes.

5.6.2 Captive iron ore mines of SAIL are located in the district West Singhbhum of Jharkhand and district Keonjhar & Sundergarh of Odisha. At present, most of the roads in the mining areas, both in West Singhbhum district of Jharkhand and Keonjhar and Sundergarh districts of Odisha are in dilapidated condition and are a major cause of hardship. It is very difficult to transport machinery and other materials like explosives, liquid fuels, spares to the mines. This delays the supplies of machinery and spares. For timely expansion and development of mines the roads connecting to mines from the National Highways/major towns needs to be improved.

5.6.3 In the absence of adequate rail capacity in the eastern sector, a large quantity of iron ore is moved by roads in the eastern sector to feed the local sponge iron and steel plants in addition to support exports. In view of the growing demand of iron ore within the country, it is recommended that all the road projects undertaken in the mining area be completed as soon as possible. Some of the road routes critical to Indian mining sector in this region are:

(i) Rajamunda-Barbil (NH215) – 60 kms (ii) Barbil-Panikoili (NH215) – 189 kms (iii) Chandikhole – Paradip (NH5A) – 77 kms

(iv) Jamshedpur – Haldia (NH) 33, NH 6, NH 41) – 200 kms (v) Jaintgarh – Chaibasa – Haldia (NH 75E) – 100 kms