Friday, April 29, 2011


ASSOCHAM urges Karnataka government to review iron ore mining leases

Leading chamber ASSOCHAM has asked the Karnataka government to undertake a detailed review of iron ore mining leases and highlight the needs of steel units before the Supreme Court-appointed Central Empowered Committee while framing new rules.

It said that mining should be moved from unorganized sector to organized if it is to be done in a legal, scientific and environment-friendly manner.The Associated Chambers of Commerce and Industry of India said that but any interruption in supply of iron ore to steel industry would throw lakhs of employees out of jobs and their dependents would suffer.

The mines in Karnataka supply iron ore to several large steel plants like JSW, Kirloskar Ferrous, Mukand Ltd and Kalyani Steels. The state also supplies raw material to units located in Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu and dozens of small and medium-sized sponge iron units.

ASSOCHAM’s Secretary General Mr DS Rawat in a communication to Karnataka chief minister Mr BS Yeddyurappa said that “Absence of iron ore supply would be a death blow to the steel industry which is already grappling with numerous other problems.”One of the observations made by Lokayukta is that several mines entered into raising contracts and transferred mining leases without the state government’s permission in contravention of Rule 37 of Minerals Concession Rules 1960.Mr Rawat said that “There is apprehension that in case a conclusion is arrived at by the apex committee without studying individual agreements and makes a prima facie determination of illegality, it could result in wrongful closure of many mines.”

Steel, iron and other industries have invested Rs 62,000 crore in the landlocked Bellary-Hospet region as it has abundant availability of iron ore. Mr Rawat said that “Shutting down of these industries will also cause loss of immense magnitude to the state exchequer.”

ASSOCHAM said it fully supports the government in ensuring effective implementation of rules and regulations by adhering to systems and procedures as stipulated by various governmental agencies. He said that “We would like to re emphasize that a decision regarding closure of any mine should be done judiciously after investigating all aspects.”Keeping in view the huge investments, employment of lakhs of workers, social responsibilities and dependency of industries on iron ore, ASSOCHAM requested uninterrupted availability of iron ore lumps and fines to meet industrial requirement while framing policies.Last month, Karnataka formed a team of officials to compile a detailed reply over issues raised by CEC on illegal mining in the state.

No comments: