| Karnataka iron and steel industry wants iron ore auctions on daily basis | |
The iron and steel manufacturers in Karnataka wants the government to conduct auctions on daily basis or at least on alternate days to ensure sufficient supply to units, according to Sajjan Jindal, President of Karnataka Iron and Steel Manufacturers Association (Kisma).
The Apex Court has allowed auction of 4 million tons of high grade iron ore for October and the first round of the auction will feature 2 million tons of ore which will happen on 5th Oct (third of the auctions taking place).
The auction will prove to be beneficial for the sponge iron, pig iron and steel mills, which are reliant on iron ore from Karnataka, to restore production.The move of the auction came after the iron and steel industry appealed with the Karnataka chief minister for supply of ore at least 2.5 million tons a month.According to Kisma, the industry in Karnataka requires on an average of 104,000 tons per day, while the supply was 20,000 tons.
“During the first two auctions, held on September 14 and 29, we had auctioned 1.24 mt at an average rate 20 per cent higher than the base price. Of the 40 bidders listed with NMDC, 16 were successful in the second auction. The ore will be made available to steel mills dependent on the ore from NMDC’s mines in Bellary on a priority basis,” H R Srinivasa, director, Department of Mines and Geology, Karnataka, reported Business standard.
According to the reports, in the second auction, the sale of 932,000 tons generated Rs 227 crore at an average sale value of Rs 2,500 a ton.
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