8 iron ore mining leases in Bellary have been granted enhancement of permissible iron ore production limit but they will have to limit their enhanced production for remaining months of FY17 to 50% of the permitted enhanced production.
Monitoring Committee has recently issued a notification regarding allotment of additional production to the working leases whose production limit has been enhanced by Central Empowered Committee (CEC).
CEC has granted enhancement of permissible production limits of iron ore in respect of nine category “A” and category “B” mining leases of Bellary district. Out of these nine leases, eight leases are currently operating.
As the total maximum permissible annual production of iron ore for all presently operating mining leases in Bellary district will exceed the cap of 25 MnT as fixed by Honorable Supreme Court of India, the CEC has issued guidelines regarding limiting the enhanced annual production of these eight mines for FY17 in such a way that total annual production in Bellary district does not exceeds 25 MnT.
According to the guidelines, the eight mining leases for the remaining months of the current fiscal, will have to limit their enhanced production to 50% of the permitted enhanced production. Also, atleast 50% of total production must be put up for auction invariably to meet the need of the industries.
Permissible annual iron ore production for the 8 mining leases are as follows:
|
S.no |
Name of the Lease | ML No. | Category | Earlier Quantity (MTPA) |
Permitted Enhanced Quantity (MTPA) |
50% of Enhanced Quantity (MTPA) |
Final MTPA |
| 1 | VESCOM | 2296 | A | 0.59 | 0.51 | 0.255 | 0.845 |
| 2 | B. Kumar Gowda | 2516 | A | 0.64 | 0.62 | 0.31 | 0.95 |
| 3 | SMIORE | 2580/2678 | A | 0.74 | 0.86 | 0.43 | 1.17 |
| 4 | Zenith Transport Co. | 2547 | A | 0.44 | 0.04 | 0.02 | 0.46 |
| 5 | MSPL | 2416 | B | 0.91 | 0.89 | 0.445 | 1.355 |
| 6 | Zeenath Transport | 2239 | B | 0.12 | 0.06 | 0.03 | 0.15 |
| 7 | SV Chetty | 2604 | B | 0.08 | 0.02 | 0.01 | 0.09 |
| 8 | VNK Menon | 2543 | A | 0.043 | 0.057 | 0.0285 | 0.071 |
Karnataka’s domestic steel industry to be benefitted – Steel industry in Karnataka which has been struggling to secure iron ore owing to demand-supply gap will be benefitted. Enhanced iron ore production at these eight mines will lead to more quantity to be put up in the e-auctions which will give some sense of relief to southern India based steel makers.
So far in this fiscal (till Nov’16), 17.98 MnT iron ore has been sold through Karnataka e-auctions.
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