Central Empowered Committee (CEC)- Supreme Court appointed body has recommended the Apex Court to replace the current e-auction system of iron ore sale in Karnataka with an alternate system in order to bring more transparency. The alternate system will have provisions to enable the mineral producers and the steel makers to sign long term supply contracts, check under-pricing etc.
CEC which is currently supervising the mineral auction in Karnataka has told Supreme Court that the present system of the e-auction be replaced by the state govt. monitored system which will bring more transparency in the system. Such a system will also remove under-pricing by some miners that has potential to manipulate the market.
The CEC report said that the new e-platform based system will ensure iron ore transactions take place in a “transparent” manner and “there is no under-invoicing of sale and purchase and consequently loss of revenue by under-payment of royalty and taxes does not take place”.
Earlier on 18 Mar’16, The Federation of Indian Mineral Industies (FIMI) moved the Apex Court seeking a halt on e-auction process for sale of iron ore and manganese ore in Karnataka. Following this, Supreme Court had asked CEC to reply to FIMI’s plea. CEC’s latest report on setting up of alternate online market place is in response to the same.
-Sourced
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