The future of mining industry in Karnataka, which has come to a standstill, is likely to be clear soon.
The Supreme Court is expected to deliver a ruling on Monday on whether private companies can resume iron ore mining in the State. In July last year, the apex court had imposed a ban on mining in Karnataka on environmental grounds.
Even if the court were to allow mining in the 21 leases based on the recommendation of the Central Empowered Committee (CEC), it would be good news especially for the steel industry that is reeling under the impact of iron ore shortage.
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Such a move would benefit companies such as JSW Steel and Kalyani Steel. The steel makers have been operating at a lower capacity due to shortage of raw material in the State.
The apex court-appointed CEC, which looked into the issue of illegal mining in the State, had classified the leases based on the extent of illegalities into three categories — A, B and C. The mines in which there were minimal or least irregularities were categorised as A and those with the maximum illegalities were put in C category.
The CEC had recommended that 21 mining leases could be allowed to carry out mining operations. This is provided that the leases comply with the statutory rules. The A category mines consisted of 21 operational and 24 non-operational leases.