Jamshedpur, Dec. 21: The Steel Authority of India (SAIL)’s plans to pump Rs 1,600 crore in the state to modernise Chiria mines in West Singhbhum could be thrown off track due to the government’s reluctance to renew mining lease for Chiria.
Chiria mines, which has the richest iron ore deposit in Asia, is under the Indian Iron and Steel Company (IISCO), a subsidiary of SAIL.
SAIL had recently decided to upgrade the mines following a rise in the demand for iron ore in the international and domestic markets.
Government sources said the mining department is currently studying the renewal of the mining lease of Chiria, which has been pending since 1979. “Three iron ore zones under Chiria — Sukhi, Dhobil and Ajita — are awaiting lease renewal. But the government is not too keen,” the sources said.
Director of the state mining department, I.D. Paswan, too hinted that the department is not in favour of renewing lease of the entire area in Chiria for the company. He alleged that IISCO had violated mining regulations in Chiria. “Their application for lease renewal is pending with us. We are contemplating action against the company for violation of mining rules,” he said.
There are six iron ore zones under Chiria mines. Apart from Sukhil, Dhobil and Ajita, mining operations also take place in Maclelon, Tatiburu and Ankua. SAIL officials have expressed their willingness to surrender the lease of Tatiburu and Ankua since the deposits have decreased considerably. The mining lease of Maclelon expires on 2005.
Paswan said lease in other mining areas could be cancelled. The mines director said: “We are not aware of any investment plan of SAIL in Chiria.” IISCO executive director (mines and colleries) T.K. Duttaray refused to comment.
“SAIL chairman V.S. Jain and the chairman of IISCO, S.C.K. Patni, met chief minister Arjun Munda separately to discuss the issue of the renewal of mining lease for Chiria. Munda, who also holds the mining portfolio, assured both of them that he would look into the matter,” government sources said.
The mining lobby has questioned the government’s motives. “IISCO has been carrying out mining in extremist-infested areas of West Singhbhum for the last seven to eight decades. If the company has violated mining rules, it can be penalised. The government needn’t cancel their mining lease for it,” mine-owners said.
