A stockpile of 25 million tonnes of iron ore had been seized
from various mines in Karnataka. And the CEC has been asked to submit a report
to the Supreme Court on September 2.
After reviewing the report submitted by the CEC today, the
Supreme Court has permitted monthly auctions of 1.5 million
tons of iron ore from stockpiles of 25 million tons in the state. And the auctions
are likely to begin 16th September onwards, according to
sources.
The auction will begin after steel companies in the state
submit details of their requirement, according to today's decision by a
three-judge bench, headed by Chief Justice Sarosh Homi Kapadia. The court asked
steel companies to form an association and work out a rehabilitation program in
three months so that regulated mining could be allowed.
The CEC report said the
lease-wise and/or grade-wise reserve price for iron will be fixed after taking
into consideration the sale price obtained/ fixed by the state-owned NDMC. It
said only steel and associated industries –wholly/partly dependent on iron ore
from Karnataka for their own use– can take part in the auction.
The CEC report also says that around 11 mines were found not
guilty for illegal practices and 80% of the amount of iron ore seized will be
refunded to them and the rest 20% will be kept for environment & forest
development purpose.
Reported by: Monica Patnaik (monica.patnaik@steelmint.com)
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