A government body has recommended
that production of iron ore in three districts of Karnataka be restricted to 30
million tonnes per year, casting doubts over steelmakers', such as Arcelor
Mittal and Posco, plans to set up steel plants in the southern state.
A report submitted by the Indian
Council of Forestry Research and Education (ICFRE) has concluded that
Bellary district could sustain 25 MT of iron ore mining, and an additional 5 MT
could be mined in Chitradurga and Tumkur districts. The ICFRE was
asked by the Supreme Court to carry out an environmental impact
assessment or EIA.
The court had issued rulings in
July and August this year banning mining in the three districts after
the central empowered committee (CEC), a panel that reports to it, had
unearthed widespread environmental damage caused by mining.
The figure of 30 MT is sufficient
to meet the current requirement of steel and sponge iron makers based in the
state, according to estimates compiled by the manufacturers. But new steel
projects of ArcelorMittal and Posco, land for which is already being
acquired by the state's industrial development board, came to Karnataka largely
on the hope of being allotted captive mines. Officials of both companies have
said that their proposed steel plants will be solely dependent on allocation of
captive raw material.
But the crack-down on illegal
mining in the state, by the Lokayukta, a state-level anti-corruption body and
the Supreme Court, has put that on hold.
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