SC asks CEC to submit detailed report on Karnataka mining

Two-judge bench also defers hearing of FIMI plea for allowing mines to hike production to reach 30 mn tonne a year cap fixed for Karnataka

The Supreme Court today asked the Central Empowered Committee (CEC) to submit detailed report by March 31, 2015 on the pending issues in Karnataka mining such as e-auction, quantity of production and refund of R&R cost to mining companies.

The two-judge bench of the Court also deferred hearing on the application of Federation of Indian Mineral Industries (FIMI) for allowing operational mines to increase their production so as to reach the 30 million tonne per annum cap fixed by the court for the state of Karnataka.

"In view of the shortage of iron ore faced by the steel mills in and around Karnataka, we had asked the Apex Court to allow the operational mines to increase their current capacity so that the requirement of steel mills could be met. However, the Court directed the CEC to submit the detailed report by March 31 before looking into our application," Basant Poddar, vice president, FIMI told Business Standard.

He said, out of 115 mines in A and B categories that were allowed to restart mining by the court in its order in April 2013, there are only 23 mines operating currently. These mines together with two mines of NMDC Limited are producing around 20 million tonnes per annum. The steel industry requires around 35 million tonnes currently.

According to an estimate of FIMI the operational mines and several others who have completed R&R (rehabilitation and reclamation) Plans in the state are eligible to get a refund to an extent of Rs 150 crore for successful completion of R&R Plans, he said.