Panel asks steel min to begin talks with Jharkhand

Concerned over the delay in clearances for Chiria and Rowghat mines that would affect SAIL's operations, a parliamentary panel has asked the steel ministry to engage Jharkhand government in a dialogue for renewing the Chiria mining lease.

"The committee is concerned that further delay in the clearances will affect the sustainable operations of SAIL and IISCO, and it is high time for the ministry to enter into serious dialogue with the Jharkhand government for the renewal of Chiria mines lease," the Parliamentary Standing Committee on Coal and Steel said in its report.

Arguing that securing the renewal of Chiria mines lease was crucial for SAIL in view of the entry of private steel players eyeing Chiria, the committee demanded that PSUs, considering their social responsibility, should be given precedence over private players in the allotment of iron ore mines.

"The committee reiterates that the Rowghat iron ore project, a lifeline for the Bhilai Steel Plant, should be taken up on priority basis, lest the most profit-making plant of SAIL faces the threat of closure," the panel observed in its report.

"The Committee is dismayed to note the delay on the part of the steel ministry and PSUs to capitalise on the booming steel sector," the parliamentary panel observed in its report.

It said it agreed that recession in the steel sector had contributed to lower utilisation of plan outlays during the first two years of the 10th Plan, but pointed out that the extent of utilisation of funds thereafter had not been encouraging despite buoyancy in the steel industry.

The committee has asked the steel ministry to ensure completion of 35 schemes under SAIL's Corporate Plan before the end of the 10th Plan or in the early part of the 11th Plan.

It has also suggested that SAIL should strive towards achieving 10 per cent growth.