The Jharkhand government has reportedly finalized the draft MoU to be signed with the LN Mittal Group for its proposed 10 million tpa integrated steel plant in the state.

Following State Cabinet approval expected later this month, the MoU will be signed between the two parties by the end of August 2005.

While all minor aspects of the project seem to be in good shape, from the Jharkhand government's point of view, the critical issue of iron ore mining rights is yet unresolved. Mittals have sought 600 million tonnes of iron ore over a 30-year period.

The draft MoU, it is learnt, will commit guaranteed supplies of iron ore to the project, but would not identify (name) the mining area. The Chiria iron ore mines in Jharkhand is in a legal battle between Steel Authority of India and the state government, following the cancellation of mining rights sought by SAIL's subsidiary, Indian Iron & Steel Co.

The Jharkhand government though not in a position now to offer clean mining rights is putting in all effort to win the project.

Also See:

MoU for Mittal's Jharkhand project soon (25-Jul-05)