Chattisgarh government has been insisting that it will not transfer the Chiria iron ore mines in favour of SAIL that were transferred to SAIL from IISCO on merger of the latter with the former. Chattisgarh government has argued that it requires fresh registration as the merger has brought into picture a new entity. It has been insisting that it would transfer the mining rights only to those of the developers who are willing to add value and pump investments into the state. Both the parties went to the courts. PMO has intervened and directed both the parties to settle the matter out of court. SAIL proposed that it would set up a 12 mln tonne steel production capacity in the state in lieu of the mining rights.