MSPL rejects KISMA's contentions on mining licence

Rejecting allegations industry body KISMA, mining company MSPL today maintained that proceedings of Karnataka government in recommending iron ore mining licence to it were in accordance with the law and a Supreme Court's decision.
The company's rejoinder comes in response to a memorandum submitted by Karnataka Iron and Steel Manufacturing Association (KISMA) to PMO's office seeking setting aside of Karnataka government's proposal on the ground that the state had done it without competitive bidding.
"The entire proceedings of the State Government are as per the Supreme Court decision and the MMDR Act," MSPL said in a statement here. There is a Supreme Court Order (Sandur Judgement) which clearly lays the principles on how the lease is to be granted," the company said.

Seeking Prime Minister Narendra Modi's intervention, KISMA had contended that the state government had rejected applications of all the steel companies and recommended mining concessions in favour of MSPL which was already having iron ore mining leases of more than 700 hectares in Karnataka.
It said MSPL had applied for the mining lease in 2003 as per the notification of the government and it has taken two years to process after the Supreme Court's directions. The so called major steel producers have not even applied for mining lease in spite of notifications by the government inviting applications for grant of mining lease, it said.

On the availability of iron ore, it said the entire iron ore production by the mining companies in Karnataka is available for the use of local steel industries.

The company's application for mining lease has been considered based on eligibility criteria as per various sections of MMDR Act 1957, MSPL said.
The application was considered on the basis the company's 50 years of systematic and scientific mining experience, execution capability, financial strength and willingness to invest in mines and in industry based on minerals and availability of sufficient technical manpower, it said.
MSPL is not just a mining company, but also has a 1.2 MTPA Pellet Plant at Halavarthi Village, Koppal Taluk and District and is further investing in value addition, it said.