A majority of steel plants and ancillary industries in Karnataka have shutdown for want of iron ore, resulting in over two lakh skilled and unskilled employees losing jobs, the KISMA said in a release.
KISMA requested the state government to supply iron ore to iron and steel industry from National Mineral Development Corporation (NMDC) under long-term supply contract.
It urged e-auctioning of the stockpile to be done on daily or alternate day basis. The total revenue loss to state exchequer by non-production of iron and steel is approximately Rs 6,000 per ton in the form of various taxes such as excise and VAT, as against a royalty of Rs. 288 per tonne of iron ore.
KISMA also demanded opening of iron ore mines found legal by the Committee appointed by Supreme Court to enable continuous supply of iron ore to iron and steel industry.
"The state government should expedite the process of rehabilitation and redevelopment of forests in mining area to convince Supreme Court to allow mining," it added. It also appealed to the state government to make 24/7 ore dispatches as being done in Orissa, Chhattisgarh and other states. "Presently ore dispatches in Karnataka are between 6 am to 6 pm," it added.
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