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<http://jharkhandnews.blogspot.com/> The central government as a broker in the dispute over the Chiria mines in Jharkhand The central government, which had been trying to broker a solution in the dispute over the Chiria mines, now feels that splitting Chiria and awarding slices of Asia's largest iron ore reserve ahead of the amendments to the mines act will be a double blow to Steel Authority of India Limited (SAIL). Top government officials said the Centre accepted SAIL's argument on retaining Chiria and felt that concessions by way of slicing it for award to rival steel makers would hit the PSU doubly. First, if Chiria is split, SAIL will lose raw material resources without which it cannot remain viable. Second, the amended Mines and Minerals (Development & Regulation) Act will give SAIL access to new iron ore mines only through bidding, which will always be tilted in favour of giant global players with deep pockets. "We want the Jharkhand government to accept decisions taken at meetings held at the Prime Minister's Office," the officials said. If Jharkhand accepts the decisions then it will have to renew the mining lease of areas with about 1 million tonnes of ore in Chiria and sign an MoU with SAIL giving it lease rights over the other parts with another billion tonnes of ore. As a quid pro quo, SAIL will set up a steel plant in Jharkhand. A Mecon study commissioned for a new plant near Chiria has suggested an integrated steel unit with a capacity of 6.2 million tonnes (mt), which will be ramped up to 12.4mt a year later. A copy of this report has been submitted by the central government to Jharkhand. In internal notes sent to the central government, SAIL has estimated that it will face a huge shortfall of 2.3 billion tonnes of iron ore in the future and needs to find new mines. Taking away a part of the Chiria mines, which has reserves of about 2 billion tonnes, can cripple SAIL's expansion, the officials said. The steel behemoth has consequently filed for prospecting licences for 5,330 hectares of land at Karampada and 3,160 hectares at Ankua as well as for mining licences in 500 hectares of Megataburu-Karampada and 2,580 hectares at Ghatkuri. These are all in Jharkhand, where most of SAIL's investments will be made. As part of the strategy to feed its Rs 53,000-crore expansion and the existing steel mills, SAIL has estimated that it will require some 5.7 billion tonnes of iron ore over 50 years. Its current mines, including Chiria, will be able to supply only 3.4 billion tonnes of iron ore. Officials said discussions with the Jharkhand government had not moved forward despite several rounds of meetings held under the aegis of the PMO as well as direct talks between the Union steel secretary and the Jharkhand chief secretary. "They agreed to the renewal of a lease area with 1mt of iron ore and an MoU for SAIL's new plant near Chiria and then went back on it." Fresh talks are likely to be initiated by steel minister Ram Vilas Paswan soon, officials said. "But the ball remains in Jharkhand's court." telegraphindia.com/1080501/jsp/business/story_9213344.jsp Subject line by J-News <http://indiaenews.com/australia/20080403/108483.htm> ** ** Jharkhandi World @ * **www.jharkhandi.org * . -- Jharkhand News [EMAIL PROTECTED] Jharkhand Online Network www.jharkhand.org.in/news
