The iron and steel industry in Karnataka did not get the cap on mining raised today as the Supreme Court declined to vary its earlier order of limiting the production at 30 million ton per year.
The judges asked the counsel for the industries to work out the mining quota within themselves and the government within the 30 mta ceiling.
“We can’t keep on varying our order at your request,” the bench headed by Justice A K Patnaik told counsel, C A Sundaram. The ceiling was imposed at the recommendation of the centrally empowered committee appointed by the court.
When the judges asked who is responsible for the shortage of iron ore for the industries, counsel replied that it was the state government. Sundaram said that 69 industries have been closed down due to non-availability of ores.
In another application moved on behalf of a federation of mineral industries, the court issued notice to the state government. This application complained of delay in getting clearances. The court will hear the reply of the government on February 24.
Sundaram submitted that though the cap was for 30 mta, the actual production was far below. Out of the 115 A category mines (with least environmental violations), only 17 are operating. Similarly, only a few of the B category (less violations) mines are functioning. Therefore their output is around 8.5 mta.
The public sector NMDC Ltd produces an equivalent amount. All these come to half of the ceiling limit, though 40 mta would be comfortable level for the industries. Even within the limit, they are still short of 17 mta, counsel said. However, the court declined to vary its earlier order.
The state government has pleaded for increase in ore production capacity temporarily for the two years, without affecting the ceiling of 30 mt. The temporary permission to produce more may be balanced by reducing the production capacity for the remaining lease period. However, the government and the industries were left without relief.
