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Govt may re-allow iron ore transportation by road

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BS Reporter Kolkata/ Bhubaneswar
Last Updated : Jan 20 2013 | 2:49 AM IST

The state government may take a decision to re-allow transportation of iron ore by road for export purposes on Friday, during a review meeting convened by the state steel and mines secretary.

The state Steel and Mines department has invited the Director of Mines and other officials to review the implementation of guidelines on exports and will discuss about steps taken regarding making the export process transparent.

Sources said, the government may decide to allow transportation of ore by road for export purposes, which has been stalled since late October, in this review meeting.

Though the state government has not formally declared any ban on export transportation, it has not issued a single transit permit for trucks in November preceding the visit of the Shah Commission to the state, which is investigating illegal mining activities in the state.

The government, sources said, wanted to show to the commission that it was taking steps to curb transportation of illegally mined ore and discouraging exports, a move also supported by the commission.

In its last meeting with various stake holders of mining industry, the state government had proposed to ban or restrict export of mineral by road citing that massive heavy vehicle movement is the cause of deteriorating condition of roads, especially NH-215 that connects the key mine areas to Paradip port.

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However, due to huge opposition from truckers and miners, the government did not impose the restriction and at the same time, did not issue any transit pass for export purpose also. Even though the state government has implemented the e-registration facility for trucks from November, by Thursday it has allowed only two trucks out of 1,481 such applications, according to the government website.

“We believe the state government should start allowing export permit as about 3 million iron ore fines are stacked at mines. Nearly 15 to 20 exporters have applied the government to allow exports this month and we hope the business will start soon,” said Ramakant Nayak, president of Joda-Barbil Truck Owners' Association.

However, there was no restriction on exports through rail network and transportation for domestic consumption. The November exports were mainly done by miners while most traders did not do any business.

The November exports through Paradip slipped to all-time low to 173,000 tonnes, against close to 1.5 million tonne shipped in the same month last year due to lower supply.

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First Published: Dec 23 2011 | 12:23 AM IST

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