October 14, 2008

Mr Paswan presses Jharkhand for Chiria iron ore to SAIL

FE reported that Mr Ram Vilas Paswan union steel minister and Mr Madhu Koda chief minister of Jharkhand used the launch platform of SAIL Bokaro Steel Plant's modernization and expansion program to discuss the Chiria dispute. Mr Paswan, sore over Jharkhand's delay in renewing the lease on the giant Chiria mines in favor of SAIL, did not miss the opportunity to air his view point.

The report cited Mr Paswan as sating that "SAIL wants to set up a 12 million tonne steel plant in Jharkhand, which means it is thrice the size of Bokaro Steel Plant's present capacity, employing 20,000 people. But Mr Madhu Koda is not in a mood to cooperate with SAIL on the mining issue."

Mr Paswan said that SAIL has revised its target of increasing steel capacity and plans to take it up to 124 million tonnes by 2011-12 against 110 million tonnes by 2010 as planned earlier.

SAIL Bokaro plant is increasing hot metal capacity from 4.5 million tonnes per annum at present to 7.44 million tonnes per annum by 2010 at a cost of INR 11,000 crore, an upward revision from the initial estimate of INR 9,000 crore.

Chiria, with 1 billion tonne of iron ore under the ground, is said to be the second largest iron ore reserve in the world. However, the Jharkhand government, which has a proposal from steel tycoon Mr LN Mittal as well, is yet to decide whether to divide Chiria for all players or renew the lease in favor of SAIL.