'SAIL not to share Chiria resources with Mittal Steel'

Written by Agencies | New Delhi, August 31: | Updated: Aug 31 2007, 20:11pm hrs
Government said it was not considering any proposal for a possible alliance between state-run SAIL and world's biggest steel maker Mittal Steel, which is investing Rs 80,000 crore in India, for sharing of Chiria Mines.

Replying to a written question, Minister of State for Steel Akhilesh Das informed Rajya Sabha that SAIL's exisiting iron ore resources are not sufficient to meet its long-term needs, hence the public sector company was not in a position to share the Chiria Mines.

"SAIL is not in a position to share Chiria Mines as the iron ore resources with the company are not sufficient to meet its long-term requirements," Das said.

SAIL, through its merger with another Public Sector IISCO last year, had got mining rights to three of the six blocks in Chiria. The remaining three -- Ajitaburu, Sukri-Latur and Tatiburu -- are sub-judice in Ranchi High Court.

The company has proposed to set up a greenfield steel plant of 10 million ton capacity in Jharkhand if it is granted mining rights for the other three Chiria blocks.

Mittal Steel has proposed to set up two plants of 12 MT each in Jharkandand and Orissa at an investment of Rs 80,000 crore and is seeking captive mining licenses in both the states.