Monday, October 5, 2009

Breakthrough Elusive In Chiria Iron Ore Dispute

A breakthrough in the three-year old dispute over ownership of Chiria mines between SAIL and the Jharkhand government remained elusive as a high-level meeting ended inconclusively today.

"The meeting remained inconclusive. The Jharkhand government is of the view that iron ore requirement projected by SAIL can be less while SAIL is justifying its demand. Therefore, no decision could be reached today," a senior government official told PTI after a meeting between Jharkhand Chief Secretary Sheo Basant and SAIL Chairman S K Roongta.

However, the Jharkhand government has agreed to process the immediate requirement of the steel major so that its Rs 70,000 crore expansion programme to take its capacity to 23 million tonnes is not hurt, the official added.

State-owned SAIL and Jharkhand government have locked horns over ownership of Chiria mines in the state.

SAIL is eyeing the control of Chiria mines, which is home to over 2 billion tonnes of high grade iron ore, to feed its expanded capacity of 23 million tonnes, which is scheduled to go on stream by 2010.

Another official said SAIL's demand for entire two billion tonnes of iron ore was termed excessive by Jharkhand.

Source: Business Standard

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