PM supports SAIL`s claim over Chiria mines
PM supports SAIL`s claim over Chiria mines Prime minister, Manmohan Singh is believed to be in favor of assigning the world-famous Chiria mines to PSU steel giant Steel Authority of India (SAIL), following a decision of the mining tribunal to allocate the mines to SAIL. In a letter addressed to the Jharkhand government, the Prime Minister is understood to have suggested that it should expedite allocation of the mines to SAIL, at the earliest to safeguard its interest. The PM does not want the interest of the PSU to be compromised and in view of its capacity expansion; the entire ore from the world-famous mines will have to be earmarked for the purpose. He asked the state government to immediately a llow SAIL to access the one billion ton of iron ore and for the remaining one billion both SAIL and Madhu Koda government could strike a separate deal to allow the PSU to mine the mineral to meet its capacity expansion in Bokaro. >SAIL, through its merger with IISCO last year, had won the mining rights to three of the six blocks in Chiria, while the remaining three are sub-judice in the Jharkhand high court. Following cancellation of leases by the State government, SAIL approached the Mining Tribunal, which subsequently asked the State to revoke the cancellation.
Shares of the company gained Rs 5.25, or 2.8%, to end at Rs 192.85. The total volume of shares traded was 3,049,513 at the BSE (Friday).
