SAIL, with backing from the Prime Minister's Office, has claimed that the mines are "vital" for its expansion plans and has been strongly pushing for an out-of court settlement on the deadlock with the Jharkhand Government.

"Vigorous efforts are being made with the Jharkhand Government at appropriate levels in the Centre to resolve the matter amicably out of court. The high-powered committee would look at both points of view and is expected to submit its report within three months," a Government official involved in the exercise said.

SAIL and the Jharkhand Government are currently locked in a battle over the Chiria mines in the Jharkhand High Court. SAIL has six mining leases in Chiria and four at Gua in Jharkhand, with an estimate iron ore reserve of around two billion tonnes.

All of these mining leases were originally granted to Indian Iron and Steel Company Ltd (IISCO), and have been in operation for the last five decades.

Of the 10 leases, the renewal of four is under dispute with the Jharkhand Government and the matter at present pending before the Court.
Expansion plans

The steel giant is executing a major expansion and modernisation programmes, entailing an investment of Rs 54,000 crore.

SAIL would need an estimated 5,736 million tonne of ore over the next 50 years, of which 2,710 million tonnes are required for SAIL's brownfield and greenfield plants in Jharkhand itself.