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This is an archive article published on February 25, 2009

Razi overturns dereservation of Ghatkuri reserve

REVERSING former CM Shibu Soren’s controversial decision to hand over the Ghatkuri iron ore reserves to private companies,Governor Syed Sibtey Razi has upheld the state Mines Department’s plea to keep it reserved for the PSUs.

REVERSING former CM Shibu Soren’s controversial decision to hand over the Ghatkuri iron ore reserves to private companies,Governor Syed Sibtey Razi has upheld the state Mines Department’s plea to keep it reserved for the PSUs.

Razi’s move has prompted the MD to file a revision petition in the Supreme Court where the case is slated to come up for hearing on March 3. “Now we have to file the revision petition”,Secretary (Mines) Santosh Kumar Satapathy told The Indian Express. Soren had dereserved Ghatkuri in favour of six companies — Monnet Ispat and Energy Ltd,Jharkhand Ispat Ltd,Prakash Ispat Ltd,Adhunik Alloys and Power Ltd,Abhijeet Infrastructure Ltd and Ispat Industries Ltd. These companies had signed an MoU with the state Government to set up steel plants in the state and had sought the mines on lease.

The state Government first forwarded their applications with a recommendation to the Centre to grant them the mines on lease,but later withdrew its recommendation,prompting these companies to move the court. Failing to get relief form the Jharkhand HC,they moved the Supreme Court which called upon the government to explain its stand. Soren then agreed to recommend the grant of lease to these companies again.

In his report to the Governor,a copy of which is with The Indian Express,Satapathy had listed three main ‘legal infirmities’ in the decision taken by Soren on December 12. Firstly,since the Ghatkuri iron ore reserve in West Singhbhum district was reserved twice in 1962 and 2006,throwing it open to private companies was required to be published in the form of a Gazette which had not been done. Secondly,no opportunity was provided to 150 other private companies who had expressed their willingness for a joint venture. Finally,though Ghatkuri was a repository of about 600 million tones of iron ore reserves,the exact quantity and quality of its ore had still not be ascertained by PSUs-Mineral Exploration Corporation Ltd and Geological Survey of India who had been awarded the tender to prospect this area. The reserve,Satapathy argued,could not be parcelled out among the companies in the absence of this information.

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