The Supreme Court has rejected the plea of Karnataka Iron & Steel Manufacturer’s Association (KISMA), for adopting uniform iron ore pricing policy by NMDC. Thus it is clear that NMDC can adopt differential pricing policy.
The Apex Court has allowed the miner to adopt differential pricing policy for iron ore in the hearing held today (01 Sept’16). According to the reports, Supreme Court rejected the plea from KISMA, seeking to fix the base price for NMDC ore to be e-auctioned in the state. This means NMDC can continue charging differential prices of iron ore in Karnataka and the rest of the country. It fixes a higher base price in Karnataka than in Chhattisgarh.
On 24 Feb’16 ,KISMA, requested them to intervene into the matter for uniform pricing policy by NMDC,via letter to the Prime Minister Office . As per them, the miners’ adoption of differential pricing will make Karnataka steel producers uncompetitive.
Since the beginning of this fiscal, NMDC’s Baila lump prices have fallen by 19% and Baila fines prices by 22%.
However, if we talk about NMDC’s prices in Karnataka e-auctions, its base prices have continued to remain at similar levels since Apr’16.
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