Yours privately

How Jharkhand misled the Supreme Court into allotting a mine reserved for PSUs to private firms

The Ghatkuri mine in West Singhbhum district, containing high grade iron ore worth crores of rupees, has always tempted private mining companies. But they could not lay their hands on it because it is reserved for public sector undertakings (psus) to prevent monopoly or cartelization in the steel industry. The mining sector and officials were stumped when the Jharkhand government in December recommended to the Centre that the mine be leased to six private firms.

The state government was acting on the Supreme Court's directions. But there is a twist in the tale the court's order followed an affidavit the state government submitted. It did not tell the court the mine is reserved."The Supreme Court was used as an instrument to legalize the allotment process," alleged Saryu Rai, bjp mla from Jamshedpur West.

Spread over 2,590 hectares, Ghatkuri was kept aside for psus by the Bihar government in 1962 through a notification. In 2006, after Jharkhand was carved out of Bihar, the state mining department invited tenders for mining in the area. Of 150 applicants, it recommended nine private companies to the Centre for mining leases.

Government rules require the department assess the quality and quantity of ore before inviting tenders, as also the state cabinet set the lease terms. The department, however, did not take the matter to the cabinet. Nor did it assess the ore. Then, the same year, it issued a notification saying the mine was reserved and would not be allotted to private players. The department also withdrew its recommendations to the Centre, saying it was a mistake to make them in the first place.