Ban on iron ore activity choking industry in Karnataka: FKCCI

 Nodal body Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has stated that in order to revive industry as well as industrial growth, it is essential that immediate steps are taken to mitigate the hardship. 

In a memorandum submitted to Union Minister for Mines, Steel Labour and Employment Narendra Singh Tomar on Friday, FKCCI President S Sampathraman said that 60 per cent of the iron ore companies have already stopped operations while the rest are facing bankruptcy.

Under these circumstances, the nodal body said that exports of iron ore should be stopped and only value-added steel and sponge iron should be exported. FKCCI urged the minister to immediately allot captive mines for existing industries based on their capacities since the Supreme Court has lifted the ban on mining activity in respect of mines not affected by scams.

“There is the need to allocate iron ore mines for sponge iron industries in Karnataka as well as coal linkages to sponge iron industries in Karnataka,” FKCCI said.

Large industries

Noting that small and medium industries cannot compete with the large industries in terms of procurement of raw material, FKCCI pointed out the need for evolving methods for level playing conditions.

“The government should revisit the present sick status of industries caused due to non-availability of raw material and provide them with necessary financial support. This will generate employment potential for more than a lakh people as well as generate income by way of taxes,” the memorandum said.

FKCCI also cited the need to allow byproducts of iron ore mines to be directly sold to cement plants, pellet and beneficiation plants. 

This could be done by ensuring continuous supply of raw material which is abundantly available in and around Bellary, Chitradurga and Tumkur and make it available to existing Industries based on their capacities by granting the mining lease.