With the ease of restrictions on the sale of iron ore, the Karnataka is witnessing new iron and steel establishments, additional production, and expansion units.
The same is quite evident with nine steel units being approved in the last one year. These companies have a total investment of Rs 17,291.42 crore, providing employment to 5,811 people.
Dr. Murugesh R. Nirani, Minister for Large and Medium Industries said on Friday that with the ease of restrictions on the sale of iron ore, industrialists have shown enthusiasm for establishment and expansion of steel industries in the state.
Many new steel companies have discussed investment opportunities in the state as steel producers are getting more incentives under the new industrial policy, he added.
According to information from the ministry of Large and Medium Industries, iron ore production in Bellary, Chitradurga, and Tumkur districts has also increased after the Supreme Court gave a green signal to export iron ore.
The Supreme Court has now increased the limit of iron ore production in the Bellary district from 28 million metric tons to 35 million metric tons. Tumkur and Chitradurga districts earlier had the potential to produce 7 million tonnes of ore. Now, this limit has been increased to 15 million tonnes.
Apart from this, the Supreme Court on August 23 has given some concession in the limit imposed on the production of iron ore in Bellary, Tumkur, and Chitradurga districts. It has also cautioned that the environment and economic development should go hand in hand with ore production.
In May 2021, the apex court cleared the ban on the export of iron ore produced in these three districts and instructed them the sale of ore through direct sale instead of e-auction.
According to the ministry, the state government is giving an investment promotion subsidy based on turnover from the date of commencement of commercial production.
With the Supreme Court allowing the export of iron ore from key mines in Karnataka, the iron ore produced in the state can be exported in terms of Government of India policies.
Earlier, the apex court had banned iron ore mining in Karnataka in 2011 citing environmental degradation and saving the mineral resource for future generations. It had also banned exports of the ore.
The apex court lifted the ban imposed on iron ore export from mines of Bellary, Chitradurga, and Tumakuru districts in Karnataka and allowed miners to sell ore through direct sale while asking them to comply with the Government of India’s rules on iron ore exports.