Press Esc to close
Sunday 05 July 2015
News updated at 2:05 AM IST
Weather
Max: 33°C
Min : 21°C
In Bengaluru
Rain lightly

Karnataka steelmakers seek govt intervention on iron ore crisis

New Delhi, Nov 23, 2012 (PTI)

Seeking immediate intervention of Steel Ministry, steel producers from Karnataka today said they may have to shut their shops due to shortage of iron ore and its higher prices. "There are 37 units which are closed. There are sponge iron units, pig iron units which are operating at less than 25 per cent capacity.

 Even the integrated plants are operating at 68 per cent as there is a severe shortage of iron ore," JSW Steel's Joint Managing Director Seshagiri Rao told reporters here.

Iron ore shortage seems to be increasing in the coming days due to host of issues and steel companies, at best, can continue to run their plants for two months in the current situation, he added.

The issues include inventories getting exhausted, state-owned producer NMDC is not producing at its permitted levels of 1 million tonnes and charging premium prices for the auctioned ore, said Rao, who was speaking on behalf of Karnataka Iron and Steel Manufacturers Association (KISMA). Besides, slow pace of approvals for Category-A mines in the state, which have been permitted by the Supreme Court to resume mining, is also hurting the industry, he said, adding that KISMA today made a representation to the Steel Ministry seeking their immediate intervention.

"Stock pile has got exhausted, NMDC is not producing at its permitted capacity. We are seeing that this shortage is going to increase further.

"If approvals for Category-A mines are not forthcoming to resume operations, then there will be a huge problem... Taking this together, at best for 1.5 months to 2 months we will be able to continue," he said.

Commenting on the situation, Suketu Shah, Joint Managing Director of Mukand Steel, said that NMDC -- the sole miner operating in Karnataka-- has ignored international market rates and charging higher prices, making things difficult for the steel makers in the state.

"In last 2 auctions, I think they (NMDC) have been able to sell only 5 or 6 per cent, definitely less than 7 per cent.

 So even if they have brought down the price, still 93 per cent remains unsold. What does it tell you. The prices are simply not affordable," he said.

Steel industry in Karnataka has been facing iron ore shortage for over a year now due to a Supreme Court imposed mining ban in the state.

The companies were provided some relief later, when the apex court allowed auction of 25 million tonnes (MT) of ore lying at the mines and later permitting NMDC to produce 12 MT per year.

In April, the apex court also allowed resumption of mining in 20 mines, which have been categorised as Category-A mines by a court-appointed Central Empowered Committee.

 However, till date only 3 mines have resumed operations with an annual production capacity of 1.40 MT. 


Go to Top

Photo Gallery
Kalari Academy of performing Arts students presenting Kalaripayattu...

Kalari Academy of performing Arts students presenting Kalaripayattu...

Actor Prakash Rai at a photography exibition on Tigers in Bengaluru on Saturday...

Actor Prakash Rai at a photography exibition on Tigers in Bengaluru on Saturday...

Sky Diving Demo in Chennai...

Sky Diving Demo in Chennai...

Cadets of officers Training Academy performing free fall para jumping from AN 32 Aircraft...

Cadets of officers Training Academy performing free fall para jumping from AN 32 Aircraft...

Villagers cross Rambi Ara River...

Villagers cross Rambi Ara River...

British Grand Prix 2015...

British Grand Prix 2015...

Derailed coaches of a goods train after collision with a truck in Purulia district in West Bengal...

Derailed coaches of a goods train after collision with a truck in Purulia district in West Bengal...

Stray cows jumped the barricade to eat the grass in front of Vidhana Soudha in Bengaluru...

Stray cows jumped the barricade to eat the grass in front of Vidhana Soudha in Bengaluru...

Labourers extract sand from the Jhelum River in Srinagar on Saturday....

Labourers extract sand from the Jhelum River in Srinagar on Saturday....

Bollywood actor Salman Khan with singer Mika Singh during the launch of an Eid song...

Bollywood actor Salman Khan with singer Mika Singh during the launch of an Eid song...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523