Wedoany.com Report-Dec.26, India Steel Authority Limited (SAIL) has signed a long-term agreement with Kalinga Commercial Corporation Limited (KCCL) for the development and operation of the Rowghat iron ore mine. The project aims to achieve an annual production capacity of 14 million tonnes.

The contract spans 28 years, incorporating an initial three-year construction phase. Under the terms, KCCL will assume complete responsibility for all aspects of mine development, including infrastructure construction and ongoing operational management after commissioning.

The Rowghat iron ore mine is located in Chhattisgarh state. This collaboration is expected to support SAIL’s raw material security and contribute to meeting the growing demand for iron ore in India’s steel industry. The agreement reflects a strategic approach to enhancing domestic mineral production capacity through partnership with experienced private sector operators.

Steel Authority of India Limited ranks as the third-largest iron ore producer in the country, following the National Mineral Development Corporation (NMDC) and Tata Steel. SAIL currently manages 15 iron ore mines across three states: Jharkhand, Odisha, and Chhattisgarh. These operations supply iron ore to the company’s integrated steel plants, supporting its position as a major steel producer in India.

The Rowghat project represents a significant step in expanding SAIL’s mining portfolio. By engaging KCCL for the full scope of development and operations, SAIL aims to ensure efficient project execution and reliable long-term output. KCCL brings established expertise in mining and infrastructure projects, which is expected to facilitate smooth implementation of the mine plan.

The 14 million tonnes per year capacity will add substantial volume to India’s domestic iron ore supply. This increase supports the country’s steel sector growth while aligning with efforts to strengthen self-reliance in critical raw materials.

SAIL has been steadily expanding and modernizing its mining operations to improve productivity and environmental performance. The Rowghat agreement complements these ongoing efforts by introducing a large-scale, long-duration project under a structured partnership model.

The collaboration is anticipated to create employment opportunities during construction and operation phases, while contributing to regional economic development in Chhattisgarh. It also underscores the value of public-private partnerships in advancing large mining initiatives in India.

Overall, this agreement strengthens SAIL’s resource base for future steel production needs. It positions the company to maintain its competitive standing in the domestic market and supports India’s broader objectives of increasing mineral output to fuel industrial growth. (Word count: 452)