Annual production
limit of 30 mt is not sufficient even to meet the requirements of
existing steel mills that require 40 mt annually
Mahesh Kulkarni / Bangalore Jan 16, 2013,
Business Standard Faced with constraints on granting new mining leases due to a cap on extraction of iron ore at 30 million tonnes (mt) per annum, the Karnataka government has appealed to the Supreme Court to withdraw its order on limiting of production.
The state government, in a fresh appeal before the apex court recently, stated the cap of 30 mt per annum from the three mining districts of Bellary, Chitradurga and Tumkur would jeopardise setting up of new steel mills in the state.
The Supreme Court, in its order dated April 20, 2012, on the recommendation of a Central Empowered Committee (CEC), had stipulated a maximum of 25 mt of iron ore can be extracted annually from Bellary and five mt from Chitradurga and Tumkur.
“With reference to the above said stipulation, it is submitted that the revised capacity of the already approved ‘A’ and ‘B’ category mines will be about 16-17 mt, which when added to the permitted capacity of 12 mt of the two NMDC mines will reach the ceiling of 30 mt per annum and, therefore, there will be no scope for granting any new mining lease in the future,” S V Ranganath, chief secretary of Karnataka, said in the affidavit.
The annual ceiling limit of 30 mt, recommended by the Indian Council of Forestry Research and Education (ICFRE), is based on its assessment of the existing infrastructure. However, there will be significant improvement in the infrastructure as a result of the implementation of the reclamation and rehabilitation (R &R) plans and the projects under the comprehensive environment plan for mining impact zone. This has to be taken into consideration while assessing a ceiling on production of iron ore, the government said.
The approved limit of production is not enough even for the existing steel manufacturing plants in Karnataka and nearby states, which depend on ore from Karnataka. Therefore, with this cap, no new iron and steel manufacturing plant can come up in Karnataka. In fact, the investment proposals for a cumulative capacity of over 30 mt of steel production are already being processed, the affidavit said.
The government has appealed to the apex court that it be permitted to fix the annual production limits for Bellary, Chitradurga and Tumkur in consultation with CEC and the present production limit be withdrawn.
The government stated it was committed to supply raw material to existing steel mills, which require about 40 mt per annum. The government had also signed a memorandum of understanding with several investors to invest in the steel sector in the state and was duty- bound to ensure allotment of captive mines to them.
The government has committed to global steel manufactures like ArcelorMittal and Posco that have decided to invest in Karnataka for establishing new steel plants. Investment proposals of cumulative capacity of over 30 mt of steel production are already being processed. A total investment of over Rs 1,00,000 crore is at stake. Apart from giving a huge boost to the gross domestic production of the state and the country, it will also provide employment opportunities for over 50,000 people, the chief secretary said in his affidavit.
Mahesh Kulkarni / Bangalore Jan 16, 2013,
Business Standard Faced with constraints on granting new mining leases due to a cap on extraction of iron ore at 30 million tonnes (mt) per annum, the Karnataka government has appealed to the Supreme Court to withdraw its order on limiting of production.
The state government, in a fresh appeal before the apex court recently, stated the cap of 30 mt per annum from the three mining districts of Bellary, Chitradurga and Tumkur would jeopardise setting up of new steel mills in the state.
The Supreme Court, in its order dated April 20, 2012, on the recommendation of a Central Empowered Committee (CEC), had stipulated a maximum of 25 mt of iron ore can be extracted annually from Bellary and five mt from Chitradurga and Tumkur.
“With reference to the above said stipulation, it is submitted that the revised capacity of the already approved ‘A’ and ‘B’ category mines will be about 16-17 mt, which when added to the permitted capacity of 12 mt of the two NMDC mines will reach the ceiling of 30 mt per annum and, therefore, there will be no scope for granting any new mining lease in the future,” S V Ranganath, chief secretary of Karnataka, said in the affidavit.
The annual ceiling limit of 30 mt, recommended by the Indian Council of Forestry Research and Education (ICFRE), is based on its assessment of the existing infrastructure. However, there will be significant improvement in the infrastructure as a result of the implementation of the reclamation and rehabilitation (R &R) plans and the projects under the comprehensive environment plan for mining impact zone. This has to be taken into consideration while assessing a ceiling on production of iron ore, the government said.
The approved limit of production is not enough even for the existing steel manufacturing plants in Karnataka and nearby states, which depend on ore from Karnataka. Therefore, with this cap, no new iron and steel manufacturing plant can come up in Karnataka. In fact, the investment proposals for a cumulative capacity of over 30 mt of steel production are already being processed, the affidavit said.
The government has appealed to the apex court that it be permitted to fix the annual production limits for Bellary, Chitradurga and Tumkur in consultation with CEC and the present production limit be withdrawn.
The government stated it was committed to supply raw material to existing steel mills, which require about 40 mt per annum. The government had also signed a memorandum of understanding with several investors to invest in the steel sector in the state and was duty- bound to ensure allotment of captive mines to them.
The government has committed to global steel manufactures like ArcelorMittal and Posco that have decided to invest in Karnataka for establishing new steel plants. Investment proposals of cumulative capacity of over 30 mt of steel production are already being processed. A total investment of over Rs 1,00,000 crore is at stake. Apart from giving a huge boost to the gross domestic production of the state and the country, it will also provide employment opportunities for over 50,000 people, the chief secretary said in his affidavit.
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