Bangalore: PVG, which provides logistics support for the mining industry in Karnataka and Goa, has taken up an expansion and diversification programme. It has blocked 1,000 railway rakes for four years and plans to purchase two rakes in about a year.

Giving details of the plans, Prasanna V. Ghotage, promoter of the group, said that besides picking up rakes, each of which would cost Rs. 18 crore and have a capacity to carry about 4,000 tonnes of iron ore, PVG planned to acquire mines.

For blocking rakes, the Railways gave priority to private entrepreneurs who owned rakes. "For every rake we own, the Railways give priority usage of 10 rakes," he added.

Mr. Ghotage said the acquisition of mines was going on. Within a year, PVG should have iron ore mines in Karnataka and Orissa.

The company, which had submitted applications for licence for iron ore mining, wanted to take up prospecting in over 100 hectares in the Donimalai area in Bellary district, where six or seven million tonnes of iron ore might be available. PVG was investing in a mobile washing plant, which could upgrade the quality of iron ore from 52 grade to 58 grade. The investment was likely to be about Rs. 600 crore, and PVG was planning to raise funds from the market, he added.

Encouraged by the price offered by China for iron ore from India, PVG planned to increase exports to that country. It had made 10 shipments since 2003-04 and tied up with V.M. Salgaocar & Bros. Pvt. Ltd., Goa, for export of ore. Over five lakh tonnes of ore had been exported so far, Mr. Ghotage said. He said the Chinese market was lucrative. "Although there is a demand from Chinese companies to go in for long-term contracts, we are happy doing business without contracts. We will see how the market evolves," he said.

PVG is making exports to P.T. Resources, Noble Resources, Cargill International, and Fremery Resources in China.

The company is exploring opportunities for export of bauxite and aluminous laterite to Gulf countries; setting up a chain of petroleum outlets in Karnataka, Maharashtra and Goa, and a beneficiation plant for upgrading iron ore; installing an ore-handling plant of two loading machines with conveyor belt, which will load 4,000 tonnes each an hour, at Vishakapatnam Port and New Mangalore Port. The handling plant will reduce the vessel loading time.

Gas contract

BOC India Limited (BOCI), a subsidiary of The BOC Group, has entered into a long-term contract to supply gases for an expansion programme under way at JSW Steel Limited (JSW), Bellary. JSW (formerly Jindal Vijayanager Steel Limited) operates a steel manufacture unit in Bellary and is increasing its capacity to seven million tonnes a year.

Under the contract, BOCI will supply JSW over 3,000 tonnes a day of gaseous oxygen, nitrogen and argon from a custom-built air separation unit (ASU).

To meet the requirement, BOCI will set up one of the largest build-and-operate on-site air separation plant in the country. The ASU is expected to be commissioned in 2008 in time to meet the requirements of gases for the expansion programme at JSW.

B.N. Singh, Joint Managing Director and Chief Executive Officer, JSW, said: "BOCI was able to provide the best technical solution for our requirement. This, along with their reputation for quality and reliability, was a key aspect in the selection of BOCI to support our expansion programme."

BOCI Managing Director E.R. Raj Narayanan said: "We are delighted to be selected by JSW for a second contract."

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