In recent years we have witnessed greater uncertainties in terms of supply and cost of raw materials in global markets and to counter this, companies in India are making an attempt to reduce their dependency on vagaries of market. In order to safeguard and enhance its competitive position Electrosteel Castings Ltd. has forayed into backward integration measures to secure raw material from captive sources for its existing and upcoming iron, steel and power plants. The Company firmly believes that sufficient and consistent availability of quality raw material from captive sources has a significant impact on the commercial viability of any industrial projects like those in the steel and power sectors.

The Company has been allotted, by Government of India, a number of captive Coal, Iron Ore and Limestone Mines for its Power, Iron & Steel and Cement Projects. The Mining Projects are under various stages of implementation. The Company has been allotted coal blocks, namely, the ‘Parbatpur Central Sector’ having quality coking coal reserve and the ‘North Dhadu Coal Block’ having quality steam coal reserve. Electrosteel has also been allotted an iron ore block in Kodolibad, which is under an advanced stage of statutory clearance.

The Company has already started commercial production of coal through open pit mining from its Parbatpur Coal Block. It has engaged mining consultancy companies from Europe to help it start longwall method of mining from the same block and has already started underground mine construction work like incline drivage and shaft sinking. It is expected that commercial production from underground mine shall start by financial year 2011-2012.