The Bellary-based Karnataka Sponge Iron Manufacturer's Association has called for an indefinite strike w.e.f. 14th September
in order to protest the severe short-fall of iron ore supply that the state has
been facing since a blanket-ban on mining activities in Karnataka.
All the sponge iron units in the State will shut down from September 14.
The strike comes in adjacent to the monthly auctions that the
state government plans to begin tomorrow as the secondary players believe that
the auctions will not benefit them much and they will still have to feel the
pinch of short-supply of iron ore.
According to T. Srinivasa Rao, President of KSIMA (Karnataka
Sponge Iron Manufacturers' Association), “The shutdown is to draw the attention
of the Union and State governments to the industry's problems, particularly the
shortage of iron ore.”
“Of the 70 sponge iron units in the State, 56 have already
stopped production for want of iron ore. We welcome the ban on iron ore exports
but at the same time, iron ore is not available for us, which has severely affected
our industries. The price per tonne of ore quoted by the NMDC is exorbitant and
we have been urging the authorities to fix uniform price for Iron ore based on
the sales of the previous six months or one year rather than on the
international market price”, he added.
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