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Eight months after Karnataka stopped iron ore exports, the Supreme Court on Tuesday passed an order which, in effect, lifts the ban. This order will come into effect from April 20.
In the interim order, the apex court gave the State Government 15 days to implement the new rules for regulating iron ore mining and transportation. The State Government had notified the Karnataka Prevention of Illegal Mining and Transportation Rules, 2011 on April 1.
The new rules stipulate that minerals have to be transported only under a valid mineral despatch permit and make it mandatory for permit holders to file monthly returns which shall be reconciled on a quarterly basis. Vehicles transporting minerals have to be fixed with Geographical Positioning System and radio frequency identification devices.
On July 26, 2010, Karnataka had imposed a ban on iron ore exports from the State's 10 minor ports to check illegal mining. It had also prohibited the movement of the iron ore for exports by restricting the issue of despatch permits on July 28 last year.
Order welcomed
Welcoming the order, Mr Rahul Baldota, Executive Director, MSPL, said the company would start booking shipment orders only from April 20 because of the uncertainty on whether the State Government will immediately allow movement of iron ore from the pit heads to the ports.
Companies such as Sesa Goa, MSPL and S B Minerals, which had challenged the State Government ban, are the biggest gainers from the apex court order. The Sesa Goa scrip gained 6.36 per cent to close at 313.65 on the BSE on Tuesday.
Sources in Karnataka Government said that even after the ban is lifted on April 20, exporters will have to comply with the new regulatory mechanism. “The psychological barrier is now gone,” said Mr R. K.Sharma, Secretary-General, Federation of Indian Mineral Industries, reacting to the apex court order. However, with additional supplies into the market from April 20, there could be a softening of prices, Mr Sharma added.
Allowing the export of accumulated iron ore at the major ports in the State, the apex court on February 11 had given Karnataka time till March 31 to implement norms to curb illegal mining and transportation. The State wanted more time to strengthen its regulatory mechanism. The apex court will hear the matter again in the first week of May, when the situation after lifting of the ban and implementation of the new rules would be examined.
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