Steel ministry committee pushes for Chiria mines hand-over to SAIL

22 October 2008

The parliamentary consultative committee attached to the steel ministry has voiced its concern in the delay in handing over of the Chiria mines by the Jharkhand government to SAIL.

The committee, which met in New Delhi today under the chairmanship of the minister for steel, chemicals and fertilisersRam Vilas Paswan has also urged minister to convene a meeting of Jharkhand MPs and the state government to expedite the issue.

They said in the absence of the mining lease, SAIL's expansion programme has been in a limbo while the demand for steel had been rising. SAIL wants to add a 19-million tonne capacity in the state through brownfield and greenfield expansion.

The consultative committee members also reiterated its demand for banning iron ore exports to ensure adequate raw material security, during its meeting to discuss the expansion programme of National Mineral Development Corporation (NMDC) expressed satisfaction that only 11 per cent of NMDC's output of iron ore is currently exported.

The minister pointed out that NMDC's export is due to the long-term contracts, which were due to expire in the near future.

The members emphasised  that the country should not export high-grade iron ore without making provision for domestic supplies for at least 50 years including future requirements of the new projects that might come up in the years ahead.