FIMI objects to Karnataka's move curbing iron ore dispatch

What's the problem?

• As per recent guideline issued by State govt they have considered only the stocks up to March 31, 2022, for issuance of permits

• In a scenario like this the lessees are in a dilemma on how to sell iron ore from the fresh production as Directorate of Mines & Geology refuses to issue permits on fresh stocks

• FIMI has urged Karnataka govt to allow free movement of all iron ore produced in the State

Bangalore: The Federation of Indian Mineral Industries (FIMI) has written to the Karnataka government to raise an objection to the latter's recent guidelines on the dispatch and transportation of iron ore from the districts of Bellary, Chitradurga, and Tumkur.

The guidelines were issued in the wake of a Supreme Court order last month which lifted the restriction on export of iron ore from the state in lines of rest in India.

As per the recent guideline issued by the state govt on dispatch of iron ore from the three districts of Bellary, Chitradurga, Tumkur post SC order they have considered only the stocks up to March 31, 2022 for issuance of permits. In a scenario like this the lessees are in a dilemma on how to sell iron ore from the fresh production as Directorate of Mines & Geology refuses to issue permits on fresh stocks.

"As per FIMI Southern Region, the said stipulation is completely unwarranted, contrary to the court order and perverse, and it must be immediately withdrawn. A clarification consequently may be issued that the said guidelines are applicable for all movement of iron ore," the Federation wrote in its letter to the Govt.

According to FIMI Southern Region, the operative portion of the Supreme Court order dated May 20, 2022 does not make any mention to the closing balance of iron ore stocks furnished by the monitoring committee as on March 31, 2022, let alone contain any directions restricting the liberty granted to sell ore without e-auction, by interstate sale, and exports. Despite this, the state government has imposed this condition in the guideline issued.

"We are also constrained to submit, in this context, that there is absolutely no reason or justification forthcoming from the guidelines to indicate why the said restriction is brought in.