INDIA BUSINESS WORLD - DECEMBER 16^th - DECEMBER 31^st - 2007

NMDC MOVES DELHI HIGH COURT AGAINST TATA STEEL OVER MINING RIGHTS

The Delhi High Court has sought an explanation from the Centre on a petition challenging its decision to grant prospecting license for mining iron ore to Tata Steel in Dantewada district of Chhattisgarh. The state government had recommended Tata Steel for the license for iron ore over an area of 2,500 hectare in Bailadila area of the district. Justice S Ravindra Bhatt also sought response from the Chhattisgarh government and Tata Steel on the petition filed by mineral firm NMDC. A mini ratna public sector company, NMDC has sought suspension of the Centre's approval given on February 14 that granted prospecting license to Tata Steel for two years. NMDC contended that the Chhattisgarh government, with whom it was pursuing the matter since April 15, 1991 for prospecting license over an area of 1,130 hectare, ignored its rightful claim and recommended Tata Steel's name.