Ranchi, June 28: Mines and geology minister Madhu Koda today asserted that the government would not renew the mining lease granted to IISCO and said only companies which agree to set up new industries in Jharkhand will be given the licence.

Koda?s statement was in response to a short-notice question put forward by the BJP?s Saryu Rai who wanted to know why the government had not approached SAIL for setting up a steel plant close to the Chiriya mines.

Rai pointed out that though Chiriya was known to have the richest iron-ore reserves in Asia, there was no integrated steel plant located close by.

Speaker Inder Singh Namdhari too asked the minister why his government was not approaching the Centre with the request to direct SAIL to set up an integrated plant in Chiriya. But Koda?s stock reply was that six mining leases, including two granted to IISCO, had not been renewed.

Annoyed by the reply, the ruling party?s chief whip, C.P. Singh, asked: ?Will the government only keep on signing big MoUs and awarding mining leases or will it also do something for setting up new industries??

Koda replied that setting up new industries in the state was a condition for securing mining lease. The government, he said, was taking necessary ?precautions? while renewing the old mining leases. IISCO?s mining lease expired several years ago, but it never cared to apply for renewal. A few more mining leasesawarded to SAIL several decades ago too have not been renewed.

The members, however, argued that mining lease granted to SAIL and IISCO should be renewed, since it has been operating in the area for the last several years. But Koda was not convinced. He said since IISCO had filed a petition in the high court, the matter should not be discussed in the House.

?IISCO was awarded two 30-year mining leases in 1947. Ideally, they should have applied for their renewal in 1976. As per the revised mining rules, they were allowed to carry out mining operations for another 20 years. But they never submitted formal applications for the renewal. Now IISCO has merged with SAIL and it has also approached the high court for the renewal. Sub-judice matters should not be discussed in the Assembly,? Koda said.

?The minister is making false claims. I can present documentary evidence to prove that IISCO officials have been running from pillar-to-post over the past few years for the renewal,? said Manoharpur legislator Joba Manjhi.

nSee J2