FIMI-Southern Region voices concern with K'taka govt over ban on export of iron ore in state

FIMI-Southern Region has voiced its concern with the Karanataka government over the ban on export of iron ore in the state and stressed that at times there are deliberate imports of the key steel making raw material into the state despite surplus availability.The inflow of the iron ore within Karnataka is open such that the buyers can bring ore from anywhere from the neighbouring states even import from other countries, the Federation of Indian Mineral Industries FIMI-Sourthern Region said in a recent letter to the Karnataka government.


PTI | New Delhi | Updated: 09-01-2022 11:11 IST | Created: 09-01-2022 11:04 IST
FIMI-Southern Region voices concern with K'taka govt over ban on export of iron ore in state
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FIMI-Southern Region has voiced its concern with the Karanataka government over the ban on the export of iron ore in the state and stressed that at times there are deliberate imports of the key steelmaking raw material into the state despite surplus availability.

The inflow of the iron ore within Karnataka is open such that the buyers can bring ore from anywhere from the neighboring states even import from other countries, the Federation of Indian Mineral Industries (FIMI)-Southern Region said in a recent letter to the Karnataka government. While the ore which remains unsold in the Karnataka market does not have any alternate avenue to be sold as the export market has been banned, FIMI added.

''At times there are deliberate imports of iron ore into the state despite surplus availability... creating unsold stocks. This disadvantages the domestic mining industry under such undue pressure, prices are reduced to achieve a sale,'' it said.

This distorted price reduction is a double whammy since it not only reduces rightful contribution to state exchequer -- in the form of royalty and DMF among others -- which is around 30 percent of sales price but also impacts the bid premium contribution by C category miners and auctioned miners since bid premium is directly proportionate to the sale price and any artificial reduction of sale price directly affects bid premium.

FIMI-Southern Region has from time to time been bringing forward the gross disparity prevalent in Karnataka vis-a-vis other states in regard to the iron ore mining sector. These, it said, are hindering the growth of the sector which has a higher potential to contribute towards the socio-economic development of the state. ''We wish to bring to your kind notice various concerns both legislative and policy-driven impacting the efficiency of the iron ore mines in Karnataka,'' FIMI said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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