SC declines to increase Karnataka ore mining cap

The iron and steel industry in Karnataka did not get the existing cap on mining output raised at Monday's hearing in the Supreme Court. The Bench, chaired by A K Patnaik, declined to change its earlier order of limiting the production to 30 million tonnes a year.

The judges asked the counsel for the industries to work out the mining quota within themselves and the government within the ceiling. "We can't keep on varying our order at your request," the Bench told counsel C A Sundaram. The ceiling was imposed at the recommendation of the Central Empowered Committee appointed by the court.

When the judges asked who was responsible for the shortage of iron ore for the industries, the counsel replied it was the state government. Sundaram said 69 industries had been closed due to non-availability of ore.

In another application moved on behalf of a federation of mineral industries, the court issued a notice to the state. This application complained of delay in getting clearances. The court will hear the government reply on February 24.

Sundaram said the cap was for 30 mt but actual production was far below. Of the 115 A-category mines (with least environmental violations), only 17 were operating. Only a few of the B-category (less violations) mines were functioning. Therefore, the output was only around 8.5 mt. The central government's NMDC produces an equivalent amount. Put together, this is less than half the ceiling, though 40 mt would be a more comfortable level for industries. Even within the limit, they were still short of 17 mt, the counsel said. However, the court declined to vary the earlier order.

The state government has also pleaded for an increase in ore production capacity for two years. It has said temporary permission to produce more could be balanced by reducing the production capacity for the remaining lease period. However, the government and the industries were left without the relief they'd sought.