SteelMint had earlier reported that Goa DMG Cancels Vedanta’s Iron Ore Import & Transit Permit. Directorate of Mines & Geology (DMG) had issued cancellation order of iron ore import and transit permit on 28 Jul’16 to Vedanta amid violations in carrying lump to Goa it procured from Karnataka e-auctions.
In response to it the company has issued a clarification on BSE. Vedanta sources more than 80% of iron ore from Goa and about 20% of ore requirement from Karnataka e-auctions to operate its pig iron plant in Goa.
The BSE filing states that after obtaining necessary dispatch permits from DMG and forest deptt. Of Karnataka and import/transit permits from Goa DMG, iron ore was bought to Vedanta’s pig iron plant in Goa after paying necessary taxes at border check posts.
But by the time the 35 trucks carrying iron ore from Karnataka arrived at Mollem check posts to collect entry tokens from officials of DMG Goa, the officials did not reach on time and the trucks were asked to move out by the check post office, RTO and forest deptt. officials. By the time company officials took note of the matter out of 35 trucks 18 trucks had already unloaded the ore and the company put on hold rest of the unloading.
Further the company said in the filing that the deviation occurred because of change in the old system of import and transit permit and they expect restoration of 12,000 MT lump post inspection. Any delay in restoring the permit transportation of iron ore from Karnataka is not likely to have any significant adverse effect on its pig iron plant operations.
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