Ranchi, Dec. 24: A day after BJP legislator from Jamshedpur (West) Sarayu Roy demanded a CBI probe into the Ghaturi iron-ore mine controversy, the state government went on the defensive today.

Though Jharkhand High Court had quashed the petition of six companies, recommended by the state for using the mine area, in 2007 on the plea that the acres are reserved for PSUs, it also made an observation that it did not mean that private parties could not be granted lease, said state mines director B.B. Singh.

“So, there were three options open before us. First, to maintain the reserve status; second, to denotify the area and throw it open for all parties; and third to recommend it for selected parties asking relaxation under Clause 59(2) of the mineral concession rule 1960. We are following the last option in the wake of a recent directive from Supreme Court,” Singh said.

The apex court had on December 15 directed the state government to send its recommendations for allocation of mining lease to the concerned parties to the Centre within five weeks.

In its affidavit, the state government had promised to ensure that each petitioner company would establish its plant within a reasonable timeframe. And that no part of the mine would be wasted.

But, BJP leader Roy, who has launched a crusade against the government’s move, said: “The government had filed an affidavit in 2006 in the high court stating that the area was reserved for PSUs. What prompted it to change the stand?”

Roy sought to know if the earlier notification of 1962, 1969 and 2006 that reserve Ghatkuri for PSUs are still effective — if yes, then the government should have de-notified the area first.

It was in 2004-05 that the state recommended an allotment (to the six companies) of a better portion of the reserve to the Centre.

But, the Centre returned the proposal with a plea that the area was exclusively reserved for PSUs and could not be recommended for private firms without a de-notification.

This had prompted the six companies — Ispat Industries, Abhijeet Infrastructure, Monet Ispat, Jharkhand Ispat, Prakash Ispat Limited and Adhunik Alloy and Power Limited — to file a special leave petition in Supreme Court.

The apex court on December 15, 2008, directed the government to send its lease recommendations to the Centre within five weeks again.

In its affidavit, government promised to ensure that petitioner companies would establish its plant within a timeframe and that no part of the ore would be wasted.