By Express News Service
NEW DELHI: The Supreme Court on Monday sought the Ministry of Steel’s response on the lifting of the ban on the export of iron ore in Karnataka. A bench headed by Chief Justice of India NV Ramana was hearing a batch of pleas concerning the public interest litigation filed in 2009 complaining of illegal and indiscriminate mining in Karnataka.
The Ministry of Mines has already informed the top court that the situation has improved since the ban was imposed in the state due to illegal mining and encroachment of forest land. The improvement is manifest from various SC-appointed Central Empowered Committee (CEC) reports, it has said. The ministry’s response came after the top court had asked it to clarify its stand on allowing the export of extracted iron from Karnataka.
Advocate Prashant Bhushan appearing for the petitioners said there are two things that still need to be considered for the ban to be lifted — protection of environment and protection of inter-generational equity. “The rate at which the mining is going on today, it will extinguish within 30-40 years. Natural resources should not be plundered for profits,” he said.
Chief Justice NV Ramana however said that the court is only concerned with the already extracted minerals right now. “We are very careful in getting reports from the CEC and are only concerned with extracted minerals available on land. We have to take into consideration that there is no restriction anywhere in other parts of the country. No one manufacturer should be receiving benefits from our order,” the CJI said.
Several advocates for respective stakeholders in the iron ore mining business argued in favour of lifting the ban on export of iron ore. Senior advocate Dushyant Dave, appearing for Mineral Enterprises, requested the court to lift the ban and accept the request of the government.
“… It is already excavated and lying on the floor. We are being deprived. It is a hazard. Nobody’s interest is served. Environmental concerns are also not being served. Please accept the suggestion by the central government. This requires serious consideration,” he said.
“From the very beginning when the ban was imposed, it was a temporary ban. Production is more than the demand. After all consultations according to the last four reports, this order should be modified. The government is encouraging the export of iron ore. Earlier, the duty was 5%, now it is nil. There is a need for foreign exchange. The ban should be lifted,” senior advocate Rakesh Dwiwedi said.
Senior advocate Abhishek Manu Singhvi submitted that there’s a rare convergence between the CEC and government and four reports say that the ban should not go on.
“With great respect, iron ore pellets should anyway be allowed to be exported,” he said.
Senior advocate Kapil Sibal appearing for some steel companies said the ore is being used by the steel industry.
“The prices have shot up because of Ukraine and China. They want the ore to be exported. I represent the steel industry. E-auction is open to all. They don’t want to put it in e-auction. They want to export it straight away because the price has shot up 4 times. I have no problem with this if the ban is uplifted. They should put it in e-auction. Why should the steel industry suffer?” he added.
Dave countering him said they have been through e-auction 11 times.
The Supreme Court had in 2013 banned the export of iron ore from Karnataka to check environmental damage in the state and fixed the maximum permissible annual production limit at 35 MMT for the A and B category mines.
The next date of hearing is on May 5.
