The Federation of Indian Mineral Industries (FIMI), the apex representative body of domestic miners, has sought the immediate withdrawals of guidelines issued by the government of the southern state of Karnataka restricting free movement of iron ore, an official note from FIMI said on Monday, June 20.
FIMI said that, as per the guidelines of the state government, only iron ore stocks up to March 31, 2022, are being issued permits for transportation outside the state and license holders for mining are facing a dilemma as to how to sell production after this date, as the government is not issuing transportation permits.
It may be noted that a recent verdict of the Supreme Court lifted a ban on export of iron ore from the state as also ban on selling outside the state.
FIMI pointed out that the Indian Supreme Court order issued on May 20, 2022, does not make any mention dealing with iron ore stocks up to March 31, 2022, let alone contain any directions restricting the liberty granted for the sale of iron ore without e-auction, whether inter-state or for export.
By restricting free movement of ore, the state government guidelines will create more market imperfections, which are directly contrary to observations made by the Supreme Court, FIMI said.