Supreme court looks likely to allow only few iron ore mines in the Karnataka after state is paralyzed in terms of supply of iron ore. Sponge iron ore units are cutting down production over higher cost of high grade iron ore available in e-auction. There is nothing cheer for steel industries based in southern India yet.
Only seven out of 170 mines in Karnataka have resumed operations, and the state hopes to start another 14 mines in the next fiscal year, said H.R. Srinivasa, director at the state government's That could mean another 14 million tonnes, bringing annual output to 15 million tonnes. That is about 10 percent of India's expected production in the fiscal year that starts in April, based on estimates by theFederation of Indian Minerals Industries (FIMI).
“It is a very conservative figure, but achievable,” Srinivasa said, adding it will take time for the Supreme Court to give approvals for the reclamation and rehabilitation plans it has called for.– Reuters
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