By IANS
Ranchi : New steel projects in Jharkhand are finding the going tough as companies are moving the courts over allocation of iron ore mines.
The Jharkhand government has recently signed memorandums of understanding (MoUs) with 52 companies in steel, power and other sectors. Most of the MoUs were signed in the steel sector. But the state government has recommended iron ore mines be given only to seven companies.
Major steel companies Arcelor Mittal and Tata Steel are still waiting to get the iron ore mines of their choice.
The disputes are over three big iron ore mining areas, Chiria, Ghatkuri and Ankua, with proven reserves of around five billion tonnes.
Jharkhand government is fighting a legal battle with Steel Authority of Indian Ltd (SAIL) in the high court for the last two years over the Chiria mines.
Four companies have filed petitions in court over Ghatkuri mines.
Ankua mines also have their share of trouble. Kolkata-based Brahmi Impex Ltd has filed a petition in Jharkhand High Court last month against the state government, alleging that rules and guidelines have been flouted while recommending the allocation of Ankua iron ore.
The Jharkhand government had recommended to the central ministry of mines a couple of months ago that parts of Ankua be allocated to JSW Ltd and Essar Steel. The ministry has approved JSW’s application on Sep 17. The company will prospect for ore in an area of 1,388.5 hectares. The ministry is still considering Essar’s recommendation.
Brahmi Impex contends that although it had applied for Ankua mines on March 20 and had fulfilled all established criteria for being considered for the state government’s recommendation, it was discriminated against and left out of the allocation process without any justification.
“Ankua iron ore mines will also shortly be recommended to central government for Tata Steel. Arcelor Mittal wants Chiria mines, which the state government cannot provide at this point of time,” said a senior official of the state mines and geology department.
“The legal battle is delaying allocation of iron ore mines to different steel companies and delaying initiation of work,” he pointed out.