For conducting geophysical studies and exploratory drilling on 597 acres of area in Maharashtra, State-run manganese ore producer MOIL has earmarked Rs 250 crore investment. The grant of Prospecting Licence (PL) for an area of 597.44 hectares in Nagpur and Bhandara by Maharashtra has come at the right time. Anticipating the grant, Rs 250 crore has been earmarked for conducting geophysical studies, exploratory drilling, MOIL CMD GP Kundargi said in the annual report.

He added that after completion of preliminary studies, these leases shall be converted to Mining Leases so as to start the mining operations in the coming years. MOIL would utilise the area for expansion of existing mines and there is a possibility of opening up of at least four mines.

This will go a long way in augmenting the production of manganese ore in the country in the coming years which in turn will help to meet the demand of steel industry to a great extent, Kundargi said, adding MOIL was taking expeditious action to develop the area at the earliest. MOIL produced 11.38 lakh tonne of various grades of Manganese Ore as against 10.71 lakh tonne in the previous year registering growth of 6.35 per cent.

It had clocked Rs 967.12 crore revenue during 2012-13, a hike of 7.51 per cent over the previous fiscal. MOIL is the largest producer of manganese ore in India with a share of 51 per cent. However, India needs to import around 23.5 lakh tonnes per annum to meet the domestic need.