NMDC may move court on mines given to Tata, Essar
The steel ministry has given the go-ahead to state-run mineral giant NMDC Ltd to approach the court for challenging the allocation of two iron ore deposits of world-famous Bailadila mines in Chhattisgarh to Tata Steel and Essar.
By PTI |
NEW DELHI: The steel ministry has given the go-ahead to state-run mineral giant NMDC Ltd to approach the court for challenging the allocation of two iron ore deposits of world-famous Bailadila mines in Chhattisgarh to Tata Steel and Essar.
"We have given the go-ahead to NMDC to approach the court to contest allocation of Deposit-I and Deposit-III to Tata Steel and Essar as the interest of the PSU was overlooked," a top steel ministry official told reporters.
The two private steel firms were given prospecting licence by the union mines ministry to study the quantity and quality of the deposits following recommendation of the Chhattisgarh government. With the steel ministry giving its approval, the PSU can now approach the Delhi High Court.
The official said the interests of the PSU will have to be ensured and whatever was its due should be given.
"We have approached the Mining Tribunal contesting the allocation of the deposits to Tata and Essar as we consider ourselves rightful claimants of these deposits. We are also planning to approach the court in this connection," NMDC Director (Commercial) Murli Manohar said over telephone.
He pointed out that in case of Bailadila-I deposit the PSU was the first applicant and despite that the Chhattisgarh government recommended Tata Steel "which is contrary to the existing norms".
In case of Balidila-III, NMDC had the licence to mine it, but the state government argued that since it was idling with it, the deposit be given to Essar. "This is not proper. We have pleaded to the Tribunal to address the issue and set the matters straight," Manohar pointed out.
"We have given the go-ahead to NMDC to approach the court to contest allocation of Deposit-I and Deposit-III to Tata Steel and Essar as the interest of the PSU was overlooked," a top steel ministry official told reporters.
The two private steel firms were given prospecting licence by the union mines ministry to study the quantity and quality of the deposits following recommendation of the Chhattisgarh government. With the steel ministry giving its approval, the PSU can now approach the Delhi High Court.
The official said the interests of the PSU will have to be ensured and whatever was its due should be given.
"We have approached the Mining Tribunal contesting the allocation of the deposits to Tata and Essar as we consider ourselves rightful claimants of these deposits. We are also planning to approach the court in this connection," NMDC Director (Commercial) Murli Manohar said over telephone.
He pointed out that in case of Bailadila-I deposit the PSU was the first applicant and despite that the Chhattisgarh government recommended Tata Steel "which is contrary to the existing norms".
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In case of Balidila-III, NMDC had the licence to mine it, but the state government argued that since it was idling with it, the deposit be given to Essar. "This is not proper. We have pleaded to the Tribunal to address the issue and set the matters straight," Manohar pointed out.
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