Economic Times reported that having awarded 6 iron ore mines to SAIL, the Odisha government has asked the steel maker for raising the capacity of Rourkela Steel Plant to 10 million tonne per annum by March, 2017 before considering more mines for the PSU.

The demand for raising the plant capacity has been made to Steel Authority of India by the state at a recent meeting between Odisha Chief Secretary Mr J K Mohapatra and Mr G Mohan Kumar Union Steel Secretary in Bhubaneswar. SAIL officials were also present.

The minutes of the meeting said that "It was impressed upon the SAIL authorities by the state Chief Secretary to enhance RSP's capacity to 10 million tonne per annum within the 12th Five Year Plan itself."

SAIL officials could not be reached for comments. RSP has the capacity to produce 2 million tonne per annum hot metal now and post the ongoing expansion, with a capital outlay of INR 12,000 crore, the capacity of the plant would go up to 4.5 million tonne per annum.

Odisha has already granted six mining leases to SAIL and only 2 of them are in working condition. The state run is likely to take steps for making the remaining functional.

The minutes read that "Since SAIL has already been granted with 6 mining leases, actual assessment of the reserve position in these leases vis a vis requirement for proposed expansion of RSP should be done before application for further mineral concessions are considered."

Meanwhile, the state government also raised the pending issues of rehabilitation and resettlement relating to the RSP and said that these issues should be addressed on a priority basis since frequent disturbances being faced by the district administration.

Close to achieving 24 million tonne capacity from 14 million tonne per annum now, SAIL has recently unveiled plans to take it to 50 million tonne by 2025.