Tuesday, October 19,
Karnataka’s ban on Iron ore exports coupled with sluggish Chinese demand has resulted in a 14.20 per cent drop or nearly six million tonnes in Iron ore handled at major ports in the first half of the current fiscal ending September 31, 2010, as against the same period last year.
Iron ore handled in the first half declined to 36 million tonnes due to the ban on exports from July 26. The ban affected mainly Chennai, Ennore, and New Mangalore ports – the three ports heavily dependent on iron ore from Bellary and Hospet regions of Karnataka.
At Chennai and New Mangalore ports, Iron ore handling declined by nearly half in the first six month of the current fiscal. Chennai handled 20.71 lakh tonnes while New Mangalore handled 21 lakh tonnes, according to first data released by the Indian Ports Association.
In Chennai, not a single tonne of iron ore was moved or exported after August 15. Similar was the case of Krishnapatnam and Mangalore, said an industry source.
It is not only ports, but even the State of Karnataka is losing out on huge revenues in the form of Forest Development tax and also royalty, said Mr Raghavendra Rao, Head (Corporate Communications), MSPL Ltd, one of the largest exporters of iron ore.
Source: The Business Line
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