Chhattisgarh recommends cancellation of mining allotment

Raipur, May 27: In a significant move, the Chhattisgarh government has recommended that the Centre cancel allotment to two private mining companies -- allegedly done in a disputed manner -- of a part of the Rowghat iron-ore reserves, one of the largest such facilities in India.

''Nicco Jaiswal and Monet Steel were allotted the 47 million-tonne Rao Dogri area reserve,'' Chief Minister Raman Singh told a gathering of newspaper editors and other journalists here today.

The Rowghat mines are reserved for SAIL but the allotment was made as SAIL apparently had no objection to the move.

Dr Singh explained that his government earlier recommended allotment of Rao Dogri to private companies after ''no objection'' from Bhilai Steel Plant and SAIL. ''Amidst a dispute over the entire case, sometime back the Union Steel Ministry and SAIL urged the Mines Ministry to reconsider the matter, cancel the allotment to private companies and again reserve the entire area for SAIL,'' he added.

The Mines Ministry desired to learn the state government's view on the matter and the cancellation was recommended sans delay.

Rowghat has a total reserve of 511 million tonnes.
When asked about the Bhilai Steel Plant (BSP) management's present stand on the entire matter, the Chief Minister said, ''As far as this case is concerned, I am focussing on SAIL. My government and the state's denizens feel that the BSP should not be deprived of raw material and should continue to function without a hitch.'' The controversy dates back to about six months. SAIL had reserved Rowghat for BSP. But after one block was allotted to private companies, it was alleged that the move would starve BSP of raw material.

UNI