The Supreme Court on Monday turned down the request to stop e-auction for sale of iron and manganese ore in Karnataka.
The honorable Supreme Court stated in its order that the, “Sale and purchase of iron-ore through the Court Appointed Monitoring Committee and by e-auction is not a singular but a connected facet of what was visualized by the Court in its bid to check, control and regulate mining and also to restore nature and environment to its earlier pristine purity, so far as possible.”
The order read ahead that, “The experience of the past has been horrific. It cannot be allowed to come back. Sale and purchase of iron-ore had been conducted in the most outrageous manner and on wholly unacceptable terms resulting, inter alia, in huge leakage of government revenue. Such experiences and events cannot be allowed to resurface. Taking an overall view of the matter, we are of the opinion that time has not come to dispense with the existing policy of sale and purchase of iron-ore in the State of Karnataka through the Court Appointed Monitoring Committee by e-auction.”
“The application is dismissed,” said a bench headed by Justice Ranjan Gogoi, while rejecting an application by Federation of Indian Mineral Industries (FIMI) seeking to halt the e-auction process.
Several mining companies and a mining industry body FIMI had sought a halt on e-auction for sale of iron and manganese ores in Karnataka
The Supreme Court had asked state government provide an alternative to e-auction of iron ore in the state.
Prior to the order the court had asked the central empowered committee (CEC) to ascertain whether e-auction of iron ores is still preferable in the state.
Various mining companies and the Federation of Indian Mineral Industries (FIMI), a mining industry body had requested to do away with e-auction for sale of iron and manganese ores in Karnataka. As per the apex court’s 2013 directions where the court had ordered that all sales of iron and manganese ores in Karnataka to be done by e-auctions only which will be monitored and overseen by the CEC.
The court’s judgment was delivered on the 2003 case that was filed by non-profit Samaj Parivartana Samudaya against large-scale depletion of forests in Karnataka due to large illegal mining.
For the Q1-FY18 in Karnataka iron ore e-auction the quantity sold was at 6.8 MnT which was 6% higher than the 6.4 MnT quantity sold in Q1-FY17.
JSW Steel continues to remain the largest buyer at 4.9 MnT iron ore followed by BMM Ispat and Mineral Steel & Power. Out of total quantity sold in Q1 FY18, NMDC sold 3.6 MnT, 1.5 MnT was sold by private miners and rest 1.7 MnT by Mysore Minerals
Karnataka state sales large quantity of iron ore through e-auctions every year. In 2017 Karnataka have sold the quantity of 16.1 MnT iron ore between Jan to Jun.
The total quantity allotted in the year 2016 and 2015 was 28.9 MnT and 24.9 MnT respectively. A growth of 16% was observed Y-o-Y in the sold quantity.
Leave a Reply