JSW Steel has got all statutory clearances for two out of five iron ore mines the steel giant had won in Karnataka, a company official has said.
The company had participated in the auction of iron ore mines last year and won five iron ore blocks in Karnataka.
"For two, we have got all the clearances," the official told PTI requesting anonymity.
The official also said that "forest clearances are awaited for the rest three. It may take another 6-9 months (to get the clearances)".
The Sajjan Jindal-led firm believes this will enhance its raw material security for iron ore -- a key product used in steel making and help the company in its plan of raising the production capacity to 40 MTPA by 2025 from 18 MTPA at present.
It will also help in bringing down the cost of production for the company.
The firm's expenditure on materials increased by 40 per cent to Rs 27,955 crore in FY 2016-17 from Rs 20,000 crore in FY 2015-16, primarily owing to 26 per cent escalation in production and rise in the prices of coal and iron ore.
JSW Steel CMD Jindal had earlier said: "The government has put in place a transparent mechanism for allocation of mineral resources through auction."
He also said the company had participated in auctions of iron ore mines in Karnataka and won 5 mines in October 2016, which have estimated reserves of 111 million tonnes, which meet approximately 20 per cent of the total requirement at Vijayanagar.
The flagship company of JSW Group, JSW Steel is India's one of the leading integrated steel manufacturers.
It has plants in six locations in the country -- Vijayanagar in Karnataka, Salem in Tamil Nadu, and Tarapur, Vasind, Kalmeshwar and Dolvi in Maharashtra - with a combined capacity of 18 MTPA.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)