The Hindu : Karnataka News : Ban on iron ore movement hits Goan sponge units

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Thursday, Jun 23, 2011
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Karnataka

Ban on iron ore movement hits Goan sponge units

Special Correspondent

PANAJI: Sponge iron units in Goa are once again in turmoil as neighbouring Karnataka recently imposed a ban on transportation of iron ore to other States.

The Goa Chamber of Commerce and Industries (GCCI) on Wednesday petitioned the Goa Government and Leader of the Opposition Manohar Parrikar, senior BJP leader, again to take up the issue with the authorities concerned.

President of GCCI Manguirish P. Raikar told The Hindu on Wednesday that at least six industrial units manufacturing sponge and pig iron in Goa had been hit after Karnataka imposed the ban.

The district administration of Uttar Kannada, through a notification, imposed a ban on movement of iron ore outside the State on June 14 which will continue till September 30, 2011.

Mr. Pai Raikar said thanks to the intervention of Deputy Commissioner B.N. Krishnaiah, 46 trucks carrying raw material, were released.

However, the Commissioner said that regarding the ban, it was the State government which had to be approached.

Mr. Pai Raikar said that GCCI had urged the Goa Government to take up the issue with the Karnataka government as all six units may be compelled to shut down in the absence of raw material.

He said that Mr. Parrikar had agreed to broach the issue with BJP government in Karnataka.

The GCCI said that the restrictions should be lifted as trucks usually carried bare minimum ore required for the units in Goa.

“We do value addition here and do not export iron ore,” Mr. Raiker said.

The ore extracted in the mining belt of Hospet, Bellary, Chitradurga and Sandur regions is supplied to units in Goa. Goa imports nearly 10 million tonnes of ore from across the border.

In the past, many Goan mining companies imported high grade ore to use for blending with low-grade ore from Goa.

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