The BCIC issued a statement in Bangalore in the backdrop of the department of mining and geology asking iron ore mines to stop all mining activities.
The Bangalore Chamber of Industry and Commerce (BCIC) on Thursday appealed the state government to carry out the re-survey and demarcation work in a phased manner, without banning mining operations in the Bellary-Hospet region.
The BCIC issued a statement in Bangalore in the backdrop of the department of mining and geology asking iron ore mines to stop all mining activities, including transportation, following the May 6 Supreme Court order for re-survey and demarcation.
The chamber pointed out that the apex court had not directed a ban on mining activities. Such a ban would affect lakhs of workers, and those firms that have been adhering to rules and regulations.
The BCIC said it appreciated the re-survey and demarcation work, but urged the government that it should be carried out without disturbing the supply of raw materials to iron ore consuming industries, since such establishments were “dependent on iron ore from the region and do not have a single captive mine of their own.”
The secretary-general of BCIC, TS Sampath Kumar, said in the statement that most of the mines have invested heavily, and the ban could cripple the steel industries operating in the region. It has been estimated that 80% of iron ore deposits in the state was in Bellary.
Drawing attention to the several new steel plants approved at the Global Investors Meet – 2010 held in Bangalore, the BCIC further said the ban would cause “immense damage to industrial development” and also create a major dent in the state’s exchequer.
The chamber appealed to the state government “to appreciate the genuine concerns of the steel industries and take a holistic view on the above subject considering the huge investment and employment of lakhs of workers being deployed in the above industries.” The statement said the ban would “severely disturb” the social fabric of the region.
Kumar added that Karnataka has been the major supplier of iron ore to steel industries, especially medium- and small-size sponge iron units in neighbouring states such as Maharashtra, Andhra Pradesh, Tamil Nadu. Out of the total annual production of around 60 million tonnes of steel in India, Karnataka alone has been contributing more than 25% of the steel production, the statement added.
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