The steel industry in Karnataka has criticised the State Government for recommending the allocation of a prime iron ore mine in Bellary to a merchant miner, MSPL, ignoring the pleas of steel companies that have invested over ₹80,000 crore in the State.
The Department of Mines and Geology of the State Government on November 5 recommended the allocation of the 200-hectare mine worth ₹20,000 crore in Bellary to the merchant mining company.
Vinod Nowal, Deputy Managing Director and President of Karnataka Iron and Steel Manufacturers Association, said it is an irony that the State ignored the application of all steel companies and recommended mining concession in favour of MSPL. He added MSPL already has iron ore mining lease of over 700 ha in the State and another application of the company for 218 ha is pending with the Central Government.
In a letter written to Prime Minister Narendra Modi, Nowal said the steel industry strongly objects and demands that the mining concession be allocated in a transparent manner through competitive bidding as directed by the Supreme Court.
“We fail to understand why the State Government recommended the mining lease in a hurry when the Central Government is in the process of amending the MMDA (Mines and Minerals Development) Act to pave the way for bidding mineral resources,” it said.
The State’s decision comes at a time when steel companies in Karnataka are facing acute shortage of iron ore since 2011 after rampant illegal activities led to the Supreme Court ban on mining. Earlier this year, the Court restored mining in category ‘A’ and ‘B’ mining.
Interestingly, iron ore mining concessions that were allocated in the State are either to merchant mining companies or individuals, depriving the industry of raw material security, said Nowal.
The State Government had conducted a hearing of all applicants for allotting mining lease in Haddinapade area, Sandur taluk in 2011-2012 and again in February this year but no decision was taken for over eight months, the letter said.
Source: The Hindu Businessline