Raipur, Sep 15 - The Chhattisgarh government has frozen the bank account of the Bhilai Steel Plant (BSP), the flagship unit of the state-run Steel Authority of India Ltd (SAIL), for failing to clear tax dues.

The Bhilai unit has to pay Rs.408 crore to the state in tax dues, government officials said.

The account was frozen late Monday after the plant failed to meet a three-day deadline to clear the dues.

'Since the Bhilai Steel Plant management was intentionally delaying payment of dues, the state government had to take the strong step of freezing the bank account,' R.K. Meshram, deputy commissioner of the commercial tax department, told reporters.