The iron ore reserves in the 60-year-old mines of SAIL-Bhilai Steel Plant's Dalli and Rajhara group are depleting rapidly and study revealed the need to refine iron ore of size less than 1 mm to achieve the desired grade for effective usage in the Blast Furnace, said the steel ministry.

The silica reduction plant, with an investment of over Rs 149 crore, is aligned with the existing crushing, screening and washing (CSW) wet plant at Dalli.

This plant is equipped with the state-of-the-art beneficiation equipment and aims to enhance the iron ore supplied to Bhilai Steel Plant, thereby increasing the annual production from the blast furnaces and reducing coke consumption and carbon emission.

"The steel ministry is focused on promoting de-carbonization in the Indian steel industry and formulating a long-term roadmap for green steel production in collaboration with the steel industry," said the ministry.

"SAIL aligns itself with the national goal for carbon neutrality and the Silica Reduction Plant at Dalli-Rajhara Mines is a significant step in this direction," it added.

The project has been completed with the help of various state government agencies, local administration and elected representatives, the ministry stated.