Karnataka-based iron and steel makers say that it might prove difficult for NMDC to fulfil Supreme Court's order of one million tonnes per month supply to the industry.

The Supreme Court order states that the company should implement the order from tomorrow.

NMDC is currently operating at 4.5 million tonnes per annum i.e. four lakh tonnes per month. Now, it needs to scale up 150 per cent (one million tonne a month).

“This is a daunting task for NMDC because they don't have a track record for producing 1 million tonne of ore every month nor do they have men and machinery to complete such a huge demand,” said Mr Dinesh Singhi, CEO of BMM Ispat and member of Karnataka Iron and Steel Manufacturers Association (KISMA).

Activity in Karnataka

NMDC's activity in Karnataka is carried out for developing iron ore mines in various regions such as Kudremukh, Donimalai, Bababudan, Kumaraswamy and Ramandurg.

The company has developed two mines in Bellary district — Donimalai and Kumaraswamy. Of the total iron ore production in Karnataka, the company has a share of 28 per cent with major customers spread across five States.

Today's Supreme Court is likely to be welcomed by the logistic companies. The July 29 order had impacted logistics service providers - both rail and road.

Mining ban

Assocham in a letter to the Prime Minister has pleaded that mining ban in Bellary has affected supply of iron ore to several large steel plants such as JSW Steel, Mukand Ltd, Tata Metalliks, Sathvahana Ispat, Kirloskar Ferrous, Kalyani Steel, Visveswaraya Iron and Steel which have set up their plants with huge investments.

Mr D.S. Rawat, Secretary General, Assocham said, “Many companies cannot use iron ore from other States due to lack of logistic infrastructure.” And he added that Karnataka is a major supplier to Maharashtra, Andhra Pradesh, Tamil Nadu and Gujarat – especially to small and medium-sized sponge iron units.

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