SAILing closer to Chiria

In the first signs that Chiria may just fly onto Steel Authority of India Ltd's lap, Jharkhand Chief Minister Madhu Koda today said that the state government will not come under any pressure and a decision on allotting the mining leases in the state will be made keeping in mind the interest of the nation.

In the first signs that Chiria may just fly onto Steel Authority of India Ltd8217;s lap, Jharkhand Chief Minister Madhu Koda today said that the state government will not come under any pressure and a decision on allotting the mining leases in the state will be made keeping in mind the interest of the nation.

Koda, who had a two hour long closed door meeting with Steel Minister Ramvilas Paswan, said that the doors of the state are open for all investors but the government has taken note of the proposals put forward by SAIL and a decision on the issue would be taken soon. 8220;We have no problems with half of Chiria being allotted for SAIL and will give due consideration to the PSU8217;s offer of setting up a green field steel plant to stake claim for the other mines in the region. We dont want to fall into the lengthy process of litigation and prefer an out of court settlement,8221; Koda said.

SAIL has offered to set up a green field facility to contest Mittal Steel8217;s offer of 12 mt steel plant in the state. The two companies are vying for the Chiria mines and the matter is pending before the Jharkhand high court. SAIL is already a beneficiary of three of the six mines in the region which belonged to Indian Iron and Steel Company IISCO, but the fate of the other three mines hangs in balance.

8220;SAIL has offered to set up a 12-15 million tonne green field facility in the state to justify its claims to the 3 mines. We have apprised the state government of our point of view and so far the talks have been very positive,8221; said Steel minister Ramvilas Paswan.

While the Koda government holds the key to the allocation of the mines, SAIL8217;s expansion plans may be hit if it loses out in the race. The PSU is already investing Rs 37,000 crore for capex from 13 MT to 22.9 MT by 2012. Out of this around Rs 20,000 crore will be invested at Bokaro Steel Plant in Jharkhand and IISCO8217;s plant at Burnpur, West Bengal.