The Hindu Business Line : Mines row: SAIL, Jharkhand may settle out of court

Bitter fight
Mittal Steel has expressed interest in Chiria
Mines contain 2.5 b tonnes of high-quality ore
Came into SAIL fold following merger of IISCO

New Delhi May 22 The row between SAIL and the Jharkhand Government over renewal of lease of the Chiria iron ore mines may head for an out-of-court settlement, with SAIL indicating that the courts may not have any objection if both parties agree to reach a settlement.

The Jharkhand Government has so far refused to extend the lease on the mines, citing lack of investment in the past.

SAIL has taken the matter to court.

Mittal Steel had also expressed strong interest in parts of the Chiria mines for setting up a unit in the State.

An MoU for this was also signed last year.

Several high-level meetings convened by the Centre to break the impasse remained inconclusive, as the Jharkhand Government has only agreed to meet SAIL's requirement for the next 50 years and grant mining leases for the remaining ore of Chiria mines to other parties willing to set up steel manufacturing facilities in the State.

Mr S.K. Roongta, Chairman of SAIL, said: "There are differences between what the Jharkhand Government's estimates about SAIL's requirement over the next 50 years and what SAIL's own estimates are."

However, indicating that a settlement may be possible, he added: "Since discussions are going on, if both the parties agree for an out-of-court settlement, the courts may not have any objection to it."

Mr Roongta also said: "I think the Jharkhand Government is thinking that if someone gets the mining rights for Chiria they might set up a steel plant there. My answer is: SAIL on its own is willing to set up a steel-making facility in the State. Then why take away my mines?"

The Chiria mines are estimated to contain 2.5 billion tonnes of high-quality ore and are considered to be the second largest deposit in the world.

These mines came into SAIL's fold following the merger of Indian Iron and Steel Company (IISCO) with it.

IISCO had held the lease for the mines.

Following the merger, SAIL has approved investment worth Rs 10,000 crore into IISCO's Burnpur unit as part of its corporate expansion plan, which is to be completed by 2010-11 and would require ore from Chiria.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Monsoon onset window may get stretched

Panel on health insurance for senior citizens formed

RCom studying market for making handsets

Govt to unveil `major initiative' on farm front

AAI entrusted with Chennai airport expansion

Oil cos: Rupee gain softens impact of crude prices

Reliance setting up pharma unit at Jamnagar SEZ

L&T looking at integrated port-shipyard facility

Tata Tea scrip surges on Coke interest in Glaceau

Ceat firming up plans for two greenfield facilities

Ten Sports exploring new revenue options

Select funds raise exposure to financial services

Mines row: SAIL, Jharkhand may settle out of court

Property tax paid to local bodies allowed as deduction

New gas find reports fuel Reliance Industries

Foreign investments - value subtracting?