And finally there has been some respite for National Mineral Development Corporation (NMDC) – the mini Ratna PSU. For those not in the loop, the PSU has active iron ore mines in the Bellary sector. No doubt, the NMDC iron ore mines – Donimalai Iron Ore Mine (DIOM) and Kumaraswamy Iron Ore Mine (KIOM) too therefore had to comply. However following intervention from the Centre citing a catastrophic effect on the allied industries and the economy, the Supreme Court provided partial relief.
I would say partial relief because, these two iron ore rich mines have had a production cap put on them – viz extraction of only one million tonne of iron ore from its these two pits – no doubt a limiting factor, especially after the ban! While NMDC would definitely argue about the other limiting factor, the SC has in its judgement given something to the nature lovers to cheer about.
In its second part while allowing NMDC to start mining, the SC has asked the state government to charge a royalty of 10% of market value on the iron ore extracted and sold thereafter. By specifically telling the Karnataka government to refrain from using the antiquated price fixed by Indian Bureau of Mines (IBM), the SC has attempted to balance the misdeeds of the mining companies by using their revenue itself to help create the much necessary buffer zone in the Bellary region.
No doubt something worth cheering about !!
Image: TheHindu
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