Essar Steel faces Raipur blues

NEW DELHI: Essar Steel���s proposed 3.2 million tonne steel plant in Chhattisgarh has run into fresh controversy. National Mineral Development Corporation (NMDC), which claims to have the mining lease of some of these blocks, has challenged the state government���s decision to award Essar the mines.

The state government has proposed to the Centre that the mines should be given to Essar. NMDC has decided to take up the matter before mining tribunal.

���NMDC���s still owns the mining lease of deposit 3 iron ore block in the Bailadila region of Chhattisgarh that has now been offered by the state government to Essar Steel. We will certainly challenge this decision of the state in the mining tribunal,��� a senior NMDC official told ET. The official added that another NMDC mine in the Bailadila region has been offered to Essar without giving the PSU the right justification.

The Centre is still to give its nod. ���NMDC has the mining lease on Deposit 3 till September 2007. However, the state government terminated the lease last year,��� the official said.
subhash.narayan@timesgroup.com