Ranchi, March 4: The Ghatkuri mines controversy has hit two steel companies where it hurts most: no return despite investing crores four years ago.

“We have purchased about 150-200 acres in Seraikela-Kharsawan district, where we proposed to set up a 2.5-MTPA (million tonne per annum) steel plant in the state,” said a senior representative of Abhijeet group, claiming to have invested over Rs 50 crore in the project.

Another company, Adhunik Alloys and Power Limited, claims to have already invested about Rs 400 crore in Jharkhand for its existing and proposed projects. “But we are yet to be allocated an iron ore mine in the state despite the government’s promise to offer every help to prospective investors,” said Chandra Bhushan Sharma, the deputy chief of corporate communication of Adhunik group.

However, the state mines department officials refuted the claims of both Abhijeet and Adhunik. “The Abhijeet group was allocated Shilpunji-Kauntaria iron ore deposit in Noamundi block but they rejected or surrendered the mine, saying it did not have quality deposit. This also helps Abhijeet to stake their claim over Ghatkuri. Besides, Adhunik group does have ownership right over the Orissa Manganese and Mineral Private Limited through the latter’s acquisition,” said Chaibasa district mining officer R.N. Prasad.

But representatives of the companies raised apprehensions over the gazette notification in 2006 reserving Ghatkuri not only for PSUs but also for a joint venture project of the state government.

“The state government entity, Jharkhand State Mineral Development Corporation, has no expertise in mining of iron ore and as far as entering into a joint venture is concerned, all big fishes in the steel and iron ore sector are eyeing the Ghatkuri pie. Small players should also be given their due rights and there should not be monopoly of a few big players,” said a senior official of one of the two smaller private companies.

The state government decided to again reserve the precious area for exploration by PSUs and the joint venture project of the government but the matter is far from getting resolved as the apex court would hear the matter soon.