Steel ministry hints at resolving Chiria iron mines dispute

The Steel Ministry will propose two-tier empowered committees at the Centre and the States to address mining disputes and other issues haunting the growth of the domestic steel sector.

"We will propose setting up empowered committees at the state level and the Central government level for deciding about mining issues," Steel Minister Virbhadra Singh said, hinting at an early end to the dispute over the ownership of the Chiria mines, hurting Steel Authority of India's (SAIL) growth.

SAIL wants early control of the Chiria mines in Jharkhand -- home to over 2 billion tonnes of high-grade iron ore to feed its expanded capacity of 26.3 million tonnes, which is scheduled to go on stream in 2011-12.

The steel major, which at present has an annual production capacity of 15 million tonnes, is looking for central assistance to get ownership of the Chiria mines and its leases renewed.

"Either there should be some mechanism to expedite issues or at least the iron ore mines should be transferred to the Ministry of Steel," Steel Minister Virbhadra Singh said, adding that raw material insecurity is a major obstacle in the country producing 124 million tonnes of steel by 2011-12.