Bhilai (Chhattisgarh), Aug 12: Steel Authority of India Ltd (SAIL) is set to bag a 2,028-hectare block in the Rowghat iron ore mine deposits in Chhattisgarh to feed its flagship unit, the Bhilai Steel Plant, as it has obtained the final clearance from the environment and forest ministry.

"Bhilai Steel has obtained the final clearance from the ministry early this month for the Rowghat project," an official told IANS on Wednesday, adding that company had been seeking the deposit since 1983.

SAIL is now preparing a proposal to be submitted to the Chhattisgarh government this month seeking clearance for mining at the Rowghat F block iron ore deposits, he added.

The Bhilai plant, located 30 km west of capital Raipur, has been desperately looking for alternative deposits as its lone existing source of iron ore at Dalli Rajhara in Durg district is expected to run dry in three-four years.

The Rowghat F block deposits, located 185 km south of Bhilai, is spread out in the districts of Narainpur and Kanker and has estimated reserves of 511 million tonnes.

SAIL applied for forestry clearance in 1983, but obtained the first stage of clearance only last October.

It applied for the first stage of environmental clearance in 1987, which it received two months ago.

The final clearance came earlier this month.