SHIMOGA: After a prolonged demand, the Central government has finally given its green signal to Visvesvaraya Iron and Steel Limited (VISL) to own its mining area in the state. Following the recommendation of the state government and pressure from the Central leaders of the state, Union Minister for Mines Dinshaw Patel, on September 26, sanctioned 140 hectares of mining area of NEB Range at Bavihalli in Sandur taluk in Bellary district for 30 years on certain conditions, sources confirmed. The VISL, one of the leading alloy steel and pig iron manufacturers in India under the Steel Authority of India Limited (SAIL), has been facing problems after the closure of mining in Kemmannugundi in 2004 as per the directions of the Ministry of Mines, Forest and Environment. Since then, VISL has been purchasing iron ore from private companies at Rs. 5,500 per tonne and from RMD division of SAIL at Rs. 3,500 per tonne. SAIL was urged to sanction funds to modernise the plant, but the company put a condition that unless VISL owns its own mining area, it will not invest in the modernisation of the steel plant. The successive states have been demanding the Centre to sanction a mining area for the steel plant. When H D Kumaraswamy was the CM, around 245.20 hectares of mining area was identified in Ramanadurga in Bellary district and recommended the Centre to sanction 140 hectares of land to VISL. Former CM B S Yeddyurappa and current CM D V Sadananda Gowda also recommended the Centre to sanction the mines.
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