SC asks Karnataka govt to inform on clear cut stand on lifting export ban on iron ore

The Supreme Court on Monday asked the Karnataka government to take a clear-cut stand and inform it in 'Yes' or 'No' to a plea made by the miners to allow export of iron ore extracted in mines of Ballari, Chitradurga and Tumakuru.

A three-judge bench presided over by Chief Justice N V Ramana told Karnataka's Additional Advocate General Nikhil Goel to apprise of the state's stand within a day as the court was told that a Cabinet meeting has been scheduled to decide on the issue.

The top court reserved on the plea by the miners. Earlier, the Union government's Ministries of Mines and Steel as well as the CEC supported the demand for lifting the ban of export of minerals from Karnataka's three districts while the steel manufacturers body opposed it.

During the hearing, advocate Prashant Bhushan, appearing for NGO Samaj Parivartan Samudaya, contended there was no need to allow the export as the Steel Ministry said there was no surplus of iron ore. He cited the 2013 judgement, former Lokayukta Justice Santosh Hegde's report as well as Parliamentary panel findings to submit that only finished steel should be exported which would generate more employment opportunities as minerals are national assets of the country.

Senior advocate Dushyant Dave, appearing for mine lease holders, relief prayed in the PIL by the NGO have already been achieved. The miners from Karnataka can't be punished interminably as it was a question of their right to conduct business and country's overall growth. He demanded equality of treatment of Karnataka miners with rest of the country, saying that the environmental damage, caused in the state, has already been recouped. He asked the court to allow export of iron ores from Karnataka. Mining companies also asked the court to lift cap of 35 million metric tonnes on iron ore extraction in Karnataka.

Additional Solicitor General K M Nataraj submitted under the extant policy of the Union government, there is no bar on export of iron ore. He also said the issue of deficit in production of iron ore can't be raised in case of Karnataka mines only.

Senior advocate Kapil Sibal, appearing for Karnataka Iron Steel Manufacturers Association, allowing export of iron ores would only help the Chinese steel industry as at present international prices are higher.

"We are entitled for priority. There would be nothing left for Indian steel industry, if we do away with e-auction and allow export. We should not permit the windfall profit," he said.

Senior advocate Rakesh Dwivedi, appearing for pellet industries, contended that the restriction and cap on production had adversely affected it.

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