Special cell may settle Chiria mine dispute

The Centre has sent a proposal to the Jharkhand government for constitution of a high-power joint panel with the officials of the ministry of steel and mines and the state government to estimate the quantum of available reserves in Chiria mines in West Singhbhum district and the actual requirements of the Steel Authority of India Limited (Sail) in the wake of the steel major's expansion and modernization programmes, involving an investment of Rs 54,000 crore.

The Centre has proposed to set up the panel with a joint secretary level officer of the ministry of steel and mines, secretary of the mines department of the state government and director level officer of Sail.

The Centre wanted to have the panel's report within three- month time from the date of the constitution of the panel.

The ongoing dispute over the Chiria mines which were spread over 2,375 hectares had started during the period of the NDA-ruled Jharkhand government led by Arjun Munda which had taken the decision not to renew the four of the ten leases enjoyed by a century old Bengal-based outfit, Indian Iron & Steel Company (IISCO).

Later, IISCO was nationalized, after which it became a sick company and a subsidiary of Sail.

IISCO was finally shut down by the Union steel ministry and referred to BIFR. A revival plan for IISCO was drawn up last year and it was merged with Sail.

IISCO attracted a large number of investors, including Mittal Steel (now Arcelor Mittal), Tata Steel and Essar, all of whom were keen to edge out the sick and closed IISCO and acquire the lease to exploit the Chiria mines.

They were encouraged to do this when the former NDA-ruled Jharkhand government led by Arjun Munda had taken the decision not to renew the four of the ten leases enjoyed by IISCO.

Meanwhile, the IISCO mines passed into Sail ownership.

The Chiria mines were the main attraction of the domestic and foreign players for investment in steel and steel-related plants in Jharkhand.

After taking over the ownership of IISCO, Sail has categorically stated that it would not share the iron ores of Chiria with any other entity. It also did not want to give up its claim to two of the six blocks- Ajitaburi and Sukri-spread over a combined leasehold area of 933 hectares for which the Jharkhand government has disputed the Sail's claim.

These blocks were with the closed IISCO as well. The Chiria iron ore deposits had estimated reserves of around 2 billion ton of high quality iron ore.