 "Normalcy in supply of iron ore to take more time in Karnataka")
Restoration of normalcy in supply of iron ore to steel mills in and around Karnataka might take more time if the Central Empowered Committee (CEC) accepts the request for reclassification of mines.
Currently, CEC, following the Supreme Court's direction, is looking into the appeal of the main petitioner, Samaj Parivartan Samudaya (SPS), in the public interest litigation against illegal mining, for reclassification of mining leases based on the extent of several illegalities committed by them.
SPS, in its interlocutory application filed on January 9, 2013, had appealed for reclassification of mining leases based on the extent of illegalities committed by them and shift such leases from Category A to Category C.
Hearing on the interlocutory application of SPS, the Supreme Court directed CEC to submit the report in this regard within six weeks.
"If CEC accepts the contention of the petitioners and submits report accordingly, then some of the mining leases in Category A will lose their mining licence subsequent to their classification under Category C," a mining industry source said.
Added S R Hiremath, petitioner in the apex court: "CEC in its final report submitted had classified mining leases into Category A, B and C based on one illegality, i.e. encroachment. Whereas other serious and massive illegalities committed by lessees falling under Category A and B have not yet been considered and there is no safeguard to prevent illegalities in future."
He listed out some mining companies such as RBSSN, B Kumar Gouda,
R Praveen Chandra, Varalaxmi Mining Co, RMML in Category A and Sesa Goa (category B), that have done several other illegalities. Such companies should be shifted to Category C, Hiremath told Business Standard.
He said these companies had committed several other forms of illegalities (some of which were found by Lokayukta), like acquisition of lease by fraud, bribery, forgery, extraction of material beyond permissible limits, illegal transportation and illegal export, under-invoicing, continuance of mining without environmental clearance or mining in violation of environmental laws among others.
Currently, six out of 18 Category A mines have restarted mining. "Even if all mining companies in Category A and B together resume mining, they can produce only about 22 million tonnes (mt) per annum. The steel industry requires about 35 mt and assuming some more mines are shifted out of Category A and moved to Category C, the production of ore will further come down," R K Goyal, managing director, Kalyani Steels said.
He said already steel mills are working at 50 per cent of their installed capacities and these will be in deep trouble if more mines go out of business. The Supreme Court has already ordered the closure of 72 mining leases in Category C (those found to have indulged in illegal mining or encroachment). There are 45 mining leases in Category A and 49 in Category B.
Currently, CEC, following the Supreme Court's direction, is looking into the appeal of the main petitioner, Samaj Parivartan Samudaya (SPS), in the public interest litigation against illegal mining, for reclassification of mining leases based on the extent of several illegalities committed by them.
SPS, in its interlocutory application filed on January 9, 2013, had appealed for reclassification of mining leases based on the extent of illegalities committed by them and shift such leases from Category A to Category C.
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The CEC in its final report dated February 3, 2012 had recommended for cancellation of mining leases classified under Category C. The court has so far allowed 18 Category A mines to restart mining. It is yet to pronounce its verdict on the Category B mines.
Hearing on the interlocutory application of SPS, the Supreme Court directed CEC to submit the report in this regard within six weeks.
"If CEC accepts the contention of the petitioners and submits report accordingly, then some of the mining leases in Category A will lose their mining licence subsequent to their classification under Category C," a mining industry source said.
Added S R Hiremath, petitioner in the apex court: "CEC in its final report submitted had classified mining leases into Category A, B and C based on one illegality, i.e. encroachment. Whereas other serious and massive illegalities committed by lessees falling under Category A and B have not yet been considered and there is no safeguard to prevent illegalities in future."
He listed out some mining companies such as RBSSN, B Kumar Gouda,
R Praveen Chandra, Varalaxmi Mining Co, RMML in Category A and Sesa Goa (category B), that have done several other illegalities. Such companies should be shifted to Category C, Hiremath told Business Standard.
He said these companies had committed several other forms of illegalities (some of which were found by Lokayukta), like acquisition of lease by fraud, bribery, forgery, extraction of material beyond permissible limits, illegal transportation and illegal export, under-invoicing, continuance of mining without environmental clearance or mining in violation of environmental laws among others.
Currently, six out of 18 Category A mines have restarted mining. "Even if all mining companies in Category A and B together resume mining, they can produce only about 22 million tonnes (mt) per annum. The steel industry requires about 35 mt and assuming some more mines are shifted out of Category A and moved to Category C, the production of ore will further come down," R K Goyal, managing director, Kalyani Steels said.
He said already steel mills are working at 50 per cent of their installed capacities and these will be in deep trouble if more mines go out of business. The Supreme Court has already ordered the closure of 72 mining leases in Category C (those found to have indulged in illegal mining or encroachment). There are 45 mining leases in Category A and 49 in Category B.