SAIL expansion gets affected due to mining lease delay

New Delhi: The Parliamentary consultative committee attached to the steel ministry has voiced its concern in the delay in handing over of the Chiria iron-ore mines by the Jharkhand government to Steel Authority of India (SAIL), said a ministry release. The committee has also reiterated the demand for banning export of iron ore.

It said that the expansion programme of SAIL has been affected due to the delay in approval of mining lease in Chiria mines. SAIL plans to add 19 million tonne steel capacity in Jharkhand through brownfield and greenfield expansion. The committee also urged Steel Minister Ram Vilas Paswan to convene a meeting of the Members of Parliament from Jharkhand and the state government to discuss the issue.

The committee, which met here today under the chairmanship of the Paswan to discuss the expansion programme of National Mineral Development Corporation (NMDC) expressed satisfaction that only 11 per cent of NMDC’s output of iron ore is exported.

The steel minister pointed out that NMDC’s export is due to the long-term contracts that will also expire in the near future. Members emphasised that the country should not export high-grade iron ore without making provision for at least 50 years requirement including the requirement of the greenfield projects that might come up in coming years. India aims to more than double its steel producing capacity from 56 million tonne to 124 million tonne by 2011-12.