Steel companies in the Karnataka that produce around 20 metric million tonnes of steel may stop production due to the shortage of iron ore if mining activities in Bellary, Hospet and other areas are not started immediately, according to JSW Steel director and CEO, Vinod Nowal.
Speaking at ‘Karnataka Manufacturing Summit’ organised by Assocham, Southern Regional Council on Thursday, Nowal said iron ore stocks were sufficient to cater to the needs of steel companies for 45 days. “I do not know what is in store for steel companies in the state after 45 days. It would be difficult for us to keep the steel plants working if mining does not resume immediately in the state,’’ he said.
Emphasising on the need to help the steel industry which was in the doldrums due to the ban on iron ore mining, Nowal said the mining sector needed political will to start exploring by taking care of the environment. “The steel sector has reported negative growth over past few cycles,’’ he said.
Coming down on politicians, bureaucrats and ministers for their lack of concern for the steel sector, he said lakhs of people depended on the steel companies for livelihood. “What will happen to investments worth `80,000 crore that have gone into steel companies? This sector is contributing revenue worth `6,000 crore to the government. When we approach the state government, politicians and bureaucrats, they look at New Delhi.
Now mining is considered a sin. Punish those who have indulged in illegal mining; but do not compare all miners with them,’’ he said.
Federation of Karnataka Chamber of Commerce and Industry (FKCCI) president K Shiva Shanmugam said: “We are ready to be part of a delegation to New Delhi to pressurise the central government to solve the problems of steel companies,’’ he said.
Principal secretary, department of commerce and industries MN Vidyashankar said the mining industry could expect some positive news by August-end.
“Chief secretary SV Ranganath has held a meeting with the secretaries of the departments of mine and geology to find ways to resume mining. The industry can expect some good news before end of this month,†Vidyashankar said.
Source: DNA
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