Karnataka ore transport ban affects Goa’s iron plants

June 21st, 2011 - 5:56 pm ICT by IANS  

Panaji, June 21 (IANS) Half a dozen sponge and pig iron manufacturing plants in Goa, including the Vedanta Resources-owned Sesa Industries Limited (SIL), have been severely affected by the Karnataka government’s ban on supply of high-grade iron ore across its borders, according to a top trade official.

President of the Goa Chamber of Commerce and Industry (GCCI) Manguirish Pai Raikar told reporters here Tuesday that the Karnataka ban, which came into effect June 14, will continue till September 30 this year.

Sesa Industries Limited, Aparant Iron and Steel, Shraddha Ispat, Ambe Metallic, Goa Sponge and Power, and Shritik Ispat have over the years been processing about 13 million tonnes of iron ore annually sourced from the Bellary and Hospet regions of Karnataka.

“The chamber (GCCI) has started negotiations with the Karnataka government. What happens is we get the raw iron ore from Karnataka, which is processed into sponge and pig iron and then sent back to Karnataka. A ban will completely affect these six units,” Raikar said.

Raikar said the decision of the northern Karnataka (Uttar Kannada) region authorities to ban the iron ore transport was harsh and was affecting iron ore trade between the two states, which was mutually beneficial.

“We are in talks with our counterparts there and are seeking ways to make the government rethink this ban,” he said.

– Indo Asian News Service
maya/sak/vt

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