Close on the heels of the central government approving iron ore exploration rights of Jharkhand?s Ankua Mines to JSW Steel, Kolkata-based Brahmi Impex Limited has filed a petition in the Ranchi High Court stating that the state government has flouted rules while recommending allocation of the mine.
Brahmi has alleged that the state government has ignored guidelines while recommending the allocation to Jindal Steel, Essar Steel and Tata Steel. The company has urged restraining the state from proceeding further on awarding of mines to the recommended companies.
While, JSW plans to set up a 10-mt steel plant in Jharkhand, Brahmi plans to set up a 1.1-mt integrated steel plant and a captive power plant in the state. The company has signed a memorandum of understanding with the government in February and claims to be one of the first applicants for Ankua Mines.
The Jharkhand government had recommended JSW and Essar Steel for allocating Ankua to the ministry of mines sometime back.
JSW?s application for prospecting has already been approved by the ministry last month. The company will now get 1,388.5 hectare of area for prospecting.
However, the ministry is still considering recommendations by Jharkhand government regarding Essar Steel.
This is not the only mine, which is under litigation in the state. Steel Authority of India (SAIL) has also challenged the state government decision over Chiria mines.
The government wants to allot a part of Chiria mines to some other steel company, which SAIL has been opposing and has filed a petition against the state in the Ranchi High Court.