The steel ministry has advised India’s biggest miner NMDC to distribute its stipulated one million tonne iron ore production among small and medium steel companies operating in the Bellary district of Karnataka on a “pro rata basisâ€Â.
Following the advice, the navratna company will now have to re-visit its supply policy, wherein it has traditionally accorded primacy to its long-term buyers. In a note on September 7, the ministry told NMDC that after analysing the Supreme Court’s August 5 order, it is of the opinion that the intent of the judgment was not to ask the state-run company to supply iron ore to the state government, but to steel makers.
“On a constructive interpretation of the order, it is evident that the iron ore to be supplied to the consumers  steel plants. However the Supreme Court has not specifically stated that this should be equitably appropriated among the various producers in the states,†the ministry pointed out.
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