Thursday 04 Aug, 2011
The Indian central government is likely to appeal against the blanket ban on iron ore mining in Bellary in Karnataka before the Supreme Court.
An inter ministerial meeting attended by secretaries in the environment and steel ministries on Tuesday felt that instead of a blanket ban, only the erring companies should be dealt with.
The Centre will present its interim report this week. The report was to be prepared in consultation with other concerned ministries like mines, steel and commerce. While imposing blanket ban on iron ore mining in Bellary last week, the apex court had asked the environment ministry to come out with an interim report by Friday on requirement of the iron ore for the domestic steel industry.
A mines ministry official said that the government will present a fact sheet at the next hearing on Friday, where-in it would argue that a blanket ban would lead to closure of several steel mills, including those in the SME sectors, in the area.
The official said that “Cost of transporting iron ore will be too much for the smaller players Kalyani Steel, Mukund Steel and Kirloskar Ferrous. Karnataka has 16 steel companies of different scales and minus JSW Steel, no one can survive if the ban continues for more than 15 days. Moreover, there will be a question mark on JSW sustaining the regular production levels, if the bans continues beyond Friday.”
An inter ministerial meeting attended by secretaries in the environment and steel ministries on Tuesday felt that instead of a blanket ban, only the erring companies should be dealt with.
The Centre will present its interim report this week. The report was to be prepared in consultation with other concerned ministries like mines, steel and commerce. While imposing blanket ban on iron ore mining in Bellary last week, the apex court had asked the environment ministry to come out with an interim report by Friday on requirement of the iron ore for the domestic steel industry.
A mines ministry official said that the government will present a fact sheet at the next hearing on Friday, where-in it would argue that a blanket ban would lead to closure of several steel mills, including those in the SME sectors, in the area.
The official said that “Cost of transporting iron ore will be too much for the smaller players Kalyani Steel, Mukund Steel and Kirloskar Ferrous. Karnataka has 16 steel companies of different scales and minus JSW Steel, no one can survive if the ban continues for more than 15 days. Moreover, there will be a question mark on JSW sustaining the regular production levels, if the bans continues beyond Friday.”
(sourced Deccanherald)
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