Karnataka govt files affidavit before SC to lift iron ore ceiling

The Karnataka government on Wedn­esday filed an affidavit before the Supreme Court submitting that the ceiling of 30 million metric tonne (mmt) imposed in three districts of the state as total production of iron ore should be lifted.

The affidavit said the ceiling of 25 mmt imposed on Bellary district and a total of five mmt on the Chitradurga and Tum­kur district would go against the plans of the government to meet the future demands of the steel industry which required ore as raw material.

The government told the court that major steel producers such as RCR Mittal, Posco, Tata Steel etc have promised to set up steel plants in the state and if the cap was imposed as recommended by the Supreme Court–appointed Central Empowered Committee (CEC), then it would not be able to meet these demands.

The affidavit said these companies have assured the state government that they will be investing capital of the order of Rs 2.5 lakh crore.

It also assured the court that all steps to protect environment as laid down by the Planning Commission would be followed.

The CEC, in its report submitted to the Apex court on Monday, recommended cancellation of 49 mining leases in Karnataka.