Steel rush at Jharkhand’s Chiria Hill, SAIL feels left out

The Indian Iron and Steel Company (IISCO), now a SAIL subsidiary, began mining in Chiria in 1870. Now the state government is wooing investment, attracting TISCO, Essar, the Jindals, Monet Ispat and the London-based L.N. Mittal to the Hill.

Eighty companies have filed applications with the district Mining Department seeking mining leases. Of them, at least 35 — including Essar and Jindal Steel — have already signed MoUs with the state government agreeing to set up steel plants in Jharkhand. Investments worth Rs 80,000 crore have been promised.

In June, L.N. Mittal’s technical experts flew down from London to appraise the Hill. The steel baron telephoned Chief Minister Arjun Munda. He indicated, sources say, a mining lease would help him decide on Jharkhand as the location of the 11 million tonne steel plant he is planning as his first Indian investment.

Says Santosh Kumar Satpathy, Jharkhand’s industry secretary, ‘‘With their (the steel companies’) entry, Chiria will pave the way for the state to become a new cradle of industry.’’

Satpathy’s optimism is not baseless. The IISCO facility here has fed SAIL’s plants in Rourkela and Burnpur. ‘‘Hamare liye to yeh sone ki Chiria hai,’’ says S.S. Dhar, IISCO’s local manager.

Between 1947 and 1982, IISCO obtained leases for 10 mines in Chiria, covering a potential 2,244.59 million tonnes reserve. Three leases — 454.84 million tonnes reserve — were cancelled by Munda on January 9. The government said IISCO had not taken recourse to scientific mining to exploit the huge reserve. It also said applications for lease renewal had not come in time.

The state government wants to sign fresh lease agreements with private companies. IISCO has moved the Jharkhand High Court. ‘‘The notification was based on erroneous facts,’’ read the IISCO petition, ‘‘the company had filed applications for renewal in time and it was carrying on mining as per the law.’’ The Chiria Hill controversy has divided the ruling NDA.

Inder Singh Namdhari, speaker of the assembly, has sided with SAIL. The local MLA, Joba Manjhi, has criticised Munda. ‘‘We want private companies to exploit the Chiria mines,’’ Joba told The Indian Express, ‘‘this will bring employment. But we will not allow the state government to lease them at the cost of a public sector unit.’’

On February 22, the court said the physical status of the three mines not be tampered with for the moment. Arun Kumar Singh, state secretary, mines, doesn’t see this as a problem: ‘‘The litigated mines are just a minuscule part of the reserve at Chiria.’’ Indeed, an iron treasure trove lies in the forested area beyond IISCO’s 10 mines.Right now all you hear beyond the IISCO zone are wild elephants and the silent steps of barefoot Adivasis tilling small patches of land. The metal that lies below may spell a different future.