In the letter addressed to Union Minister for Mines B K Handique, the CM has said VISL is finding it difficult to procure iron ore as mining operation at Kemangundi had been stopped.
To help the company, the State Government had recommended allotment of a mining lease in Sandur in 2007.
But some private mining companies have challenged the State’s move in the Supreme Court and got a stay.
Without captive mines being assigned, it will not be viable for VISL to continue its operation, he stated.
Published 21 June 2009, 16:56 IST