The Steel Ministry is yet again pushing for the renewal of Chiria mines' leases in favour of state-run SAIL to ensure that the PSU does not face any iron ore shortage while implementing its Rs 78,000-crore expansion project.
Responding to the Cabinet Secretariat's query on major issues to be looked into by the new government, the Steel Ministry has said the Centre should accord priority in getting the Chiria Mines' leases renewed by the Jharkhand government for SAIL.
"Iron ore supply from Chiria mines would be vital for the PSU to achieve its envisaged production target of 26.13 million tonnes by 2010-11," a senior Steel Ministry official said requesting anonymity.
Of the 10 mining leases SAIL had in Chiria and Gua regions, renewal of four is facing dispute while four others have got extension. The disputed mining blocks belonged to erstwhile Indian Iron and Steel Company (IISCO), which was merged with SAIL.
The Jharkhand government is of the view that SAIL cannot stake claim over the blocks originally allotted to IISCO. Chiria mines is estimated to be possessing nearly 2 billion tonnes of iron ore with ferrous (iron) content of over 62 per cent. It is being eyed by private firms, including JSW Steel, ArcelorMittal and JSPL to feed the iron ore needs of their proposed steel plants in the state.