The Supreme Court (SC)-appointed Central Empowered Committee (CEC) has recommended transportation of about 25 million tonnes (mt) of iron ore already mined and at various mines in Karnataka. The matter is likely to come up for hearing on Friday.

If the apex court approves the recommendation, it would give temporary relief to domestic steel mills in and around Karnataka, which are facing severe shortage of iron ore, the basic raw material to make steel. Steel mills, pig iron and sponge iron manufacturers based in Karnataka, which account for about 30 per cent of the national steel output, require about 45 mt of iron ore for the current year.

The CEC, in its report to the SC on August 18, said, “Keeping in view the requirement of iron ore for steel and associated industries, it may be appropriate that the already extracted ore in the various mines in the districts of Bellary, Tumkur and Chitradurga is allowed to be utilised subject to conditions.”

It said the sale proceeds, after payment of royalty at 10 per cent of the market price, should be kept or invested by the state government in a designated bank account in a nationalised bank and utilised according to court directions. The iron ore should be used exclusively for domestic steel and associated industries’ need and not exports, the report said.

“If SC agrees in-principle to permit the sale and transportation of the already mined material, the CEC would like to submit a detailed scheme in this regard within four weeks, along with the appropriate checks and balances for consideration of the court,” the report added.