The Karnataka High Court today adjourned hearing on the recent ban by the state government on export of iron ore, till August 27.
Earlier, nine prominent mining companies, including Sesa Goa, had dragged the Karnataka government to the high court, terming its decision ‘unconstitutional’.
During today’s hearing, the lawyer pleading for the miners said the decision to ban iron ore exports from Karnataka was unconstitutional and that the state government had no right to ban the export as it came under the jurisdiction of the central government.
The ban had violated the contractual right of the miners and it should be vacated as soon as possible, he added.
Both Karnataka and central governments have submitted their stance before the court on August 16 with reference to the petitions filed by the miners.
The state government had also said illegal mining would be addressed through the ban.
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Meanwhile, the ban has taken its toll on the freight traffic of railways and some of the country’s ports.
The Karnataka government had imposed a total ban on the movement of iron ore for both exports and domestic use from July 26. As a result, ore exports from the state have stopped entirely. The government has also put restrictions on mineral dispatch permits for even domestic use by steel mills.
The country produces close to 220 million tonnes of iron ore per annum, out of which 100 million tonnes are exported to other countries.
Majority of India’s iron ore is exported to China that is regarded as the single-largest market of country's iron ore.