The Karnataka steel industry has a reason to cheer. Last Friday, the Supreme Court in a ruling allowed auction of 1.5 million tonne of iron ore a month.
JSW Steel, the biggest player in the region, expects to go back to 80 per cent capacity utilisation once the auction begins.
Jayant Acharya, director (sales and marketing), JSW Steel, admitted the units in the state were under pressure.
“There is a shortfall of the raw material and we are looking at all options to source. We are hopeful once the auction begins, we will be back at 80 per cent,” he said.
The company is sourcing ore from areas as far as Chhattisgarh, putting pressure on the freight costs which in turn is squeezing its profitability.
An official from the Federation of Indian Minerals and Industries, the body which looks after the needs of the local mining industry in the country, welcomed the temporary relief.
“Curbing illegal mining is necessary. Also, the ore lying in the stockpiles should be sold,” he said.
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