SC Asks Karnataka to Allow Iron Ore Transport for Export
New Delhi, Jan 20 (PTI): The Supreme Court today asked the Karnataka government to either notify within two weeks the new law against illegal mining or lift its order banning transportation of iron ore meant for export, saying that the ban cannot be sustained indefinitely.
Earlier, the Karnataka government had banned transportation of iron ore for export purposes for six months pending a legislation to curb illegal mining. A bench of justices R V Raveendran and A K Patnaik told the state government that if it fails to notify the proposed Karnataka Prevention of Illegal Mining, Storage and Transportation Rules, 2010, it will have to make special arrangements to allow the mining firms to export the ore.
"Ban cannot be forever. You can stop illegal mining but the ban cannot stay forever," said the bench. Observing that the ban was temporary in the nature, imposed only for six months originally, the bench asked the government not to extend it beyond January.
"If there is delay, the state government may formulate necessary regulatory measures for regulating, supervising and monitoring exports," the bench said. The apex court's direction came during hearing of a bunch of petitions by mining firms, Sesa Goa, MSPL and S B Minerals, challenging state's order banning transportation of iron ores for exports from within its territory.
During the proceeding, Karnataka government said the state was waiting for Lokayukta's final report on evolving ways and means to curb large scale irregularities by various miners. The report was expected in March this year, they added.
They said the ban was for "complete overhaul" of the system in the state by putting a complete new regulatory mechanism. Opposing miners' plea to allow their stocks of iron ore piled up in docks and warehouses awaiting export, the state government said these might have been mined illegally.
The bench, however, queried: "If some one has cold, will you cut the nose?" Opposing the ban order, miners said it was totally unjustified and must not be extended.
They contended that there was no need to wait for the Lokayukta's final report as he has already met the mining department officials and advised them to take various steps to prevent illegal mining.
At this, the bench said, "We do not want to enter into arguments at this stage. We would give the state government 10-15 days, if it does not permit, then we will ask them to permit exports under some conditions."
The apex court adjourned the matter for hearing in the first week of February. The mining firms have challenged the state government's July 28 order, imposing a ban on the issuance of mineral dispatch permits for transporting iron ore for exports.
During the last hearing, state government had informed the bench that ban was imposed following the report of the Karnataka Lokayukta. It submitted that Lokayukta, in his report had said that there was large scale illegal mining and its transportation from the state.
The miners have submitted before the apex Court that due to a complete ban on transportation, their legally mined stocks were lying on the docks for months and that their value was eroding by the day. Earlier, the court had issued notices to the state government over three separate appeals filed by the mining firms.
The firms had challenged the order of the Karnataka High Court, which on November 19, upheld the state government's blanket ban on the issuance of mineral dispatch permits. They contended that the state government, which has banned iron ore exports citing provisions of the Mines and Minerals Development and Regulation (MMDR) Act, has no power to do so.
Their petition said, "The MMDR Act does not vest any power in the state government to impose a complete prohibition or ban on the mining, transportation or storage of minerals. "The only power of the state government, even under the MMDR Act, is at best to frame rules to create a machinery to detect and prevent illegal mining, transportation and storage of minerals in individual cases."