(a) whether the iron ore and lime stone from Babupur iron ore mines located in Satna district of Madhya Pradesh were considered best in quality and were used to supplied to Rourkela Steel Plant;
(b) whether a separate railway line was laid and machines and equipments worth crores of rupees were purchased for the said mines; and
(c) if so, the reasons for closure of the said mines and the number of labourers and employees likely to be affected by its closure?
MINISTER OF STATE FOR STEEL
(SHRI DILIP RAY)
(a) It is a fact that limestone produced at Ispat Limestone Quarry (ILQ) situated at Babupur, Distt. Satna was being supplied to Rourkela Steel Plant. The quality of limestone available at Satna is not regarded as the best quality available in the country.
(b) ILQ, Satna Mine was developed in the year 1961 and it has been working since then. A private siding was constructed at Satna for the despatch of limestone produced at ILQ, Satna. The above mentioned railway siding was modified to provide engine escape line for safety reasons and to accommodate 58 Box N wagons. The sanction cost for this modification was Rs. 1.91 crores. A new crushing and screening plant at a cost of Rs. 6.40 crores was constructed during 1991-95 as a part of Rourkela Steel Plant Modernisation.
(c) The production and despatch from the said mines has been gradually tapered off. The quality of limestone available at Satna is presently not acceptable for iron & steel making due to technological changes that took place at Steel Plants. During earlier years, RSP was making steel with both Open Hearth furnaces and LD convertors. Now RSP has changed to LD convertor route only. Satna Limestone was suitable for the Open Hearth process route. It is not suitable for LD process due to high percentage of silica. Presently there is no demand for Satna limestone.
No employee/labourer has been retrenched. 174 employees of the mines opted for voluntary retirement under SAIL VRS-98 Scheme. Again, another 280 employees of the mines opted for voluntary retirement under SAIL, VRS-99 Scheme. Remaining employees have given their option for redeployment to other mines/units of SAIL. Accordingly, action is being taken for the same for their gainful utilisation.