The e-auction of iron ore this
month in Karnataka has received a lukewarm response from steel manufacturers,
thanks to the high price of ore on offer.
National Mineral Development
Corporation, the only miner operating in the state after a Supreme Court verdict
in August, had pegged the price of high-grade iron ore at Rs 2,600-4,000 per
tonne. The result: only 12.4 lakh tonnes of ore was auctioned last week against
the targeted 23.2 lakh tonnes.
More than 40 companies are
believed to be in the fray for the NMDC e-auctioned iron ore.
“The quality of ore being offered
though the e-auction route is not of the desired level,” said Srinivasa Rao,
secretary of Karnataka Iron and Steel Manufacturers Association.
The government, however, denied
that ore was being sold at a higher price and was confident that it would find
takers by the end of this month.
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