Karnataka steel industry body calls for fresh auction on ore mines

Fresh auction of iron mines must be conducted to provide a level-playing field between captive and merchant miners, a Karnataka-based steel and iron ore industry body has demanded.

The industry body also claimed that the concerns raised by merchant miners over the possible supply shortage post expiry of mining leases in March 2019 are "baseless" and "unfounded".

In a letter to the Prime Minister's Office (PMO), Karnataka Iron and Steel Manufacturers' Association (KISMA) said, "In order to provide a level-playing field between captive and merchant miners, it is crucial that fresh auction of iron ore mines conducted and both be given a fair and equal chance to participate in the auction, considering that of all the iron ore mines allotted till date majority belong to merchant miners."
In the letter which has also been sent to the NITI Aayog, KISMA said, "merchant miners were given reasonable transition time of five years from induction of the amendment in the Mines and Minerals Development and Regulation Act 1957 to make mines ready for auction."