Vedanta Can’t Export Iron Ore From Karnataka, Rules Supreme Court
In another application, the apex court allowed NMDC to fix higher base price for iron ore in Karnataka
In a major setback to Vedanta Ltd., the Supreme Court of India rejected the company’s plea to export unsold iron ore in Karnataka on Thursday. Vedanta had sought to export about 4 lakh metric tonne unsold iron ore in Karnataka, which it could not sell in India.
Vedanta’s IA (application) for export permission and whether the same can be heard by the Karnataka High Court has been rejected by us. In fact, we have decided the issue and we reject the plea to export.Justice Ranjan Gogoi .
The court-appointed Central Empowered Committee (CEC) disagreed with Vedanta’s argument and told the court in its written response, “Iron ore belonging to Vedanta contains higher percentage of impurities and their mine is located at a considerable distance from the user agencies. Therefore, floor price of NMDC cannot be the basis for Vedanta to fix higher floor prices.”
As per CEC’s report, 29.04 lakh metric tonne was put up for e-auction by Vedanta in 2015-16 and 21.44 lakh metric tonne was sold in the first attempt, which is 74 percent of their total ore. “7 lakh metric tonne has remained unsold till date (of the total iron ore auctioned in Karnataka) out of which 4 lakh metric tonne is Vedanta’s and 1.7 lakh metric tonne is NMDC’s,” the CEC said.
SC Allows NMDC To Fix Higher Base Price For Iron Ore In Karnataka
In another application filed by Karnataka Miners Association, the apex court allowed state-run NMDC to continue charging differential pricing for iron ore in Karnataka.
The Karnataka Industries Mining Association had alleged cartelisation with respect to iron ore prices and sought a direction from the court that NMDC’s base price for iron ore should be fixed by the monitoring committee which will restrict any form of cartelisation.
CEC disagreed with the miners’ plea and urged the court to let NMDC have a free hand in deciding its floor price, if the company follows the regulatory mechanism applicable to other companies under the 2013 Supreme Court judgment.
The apex court banned iron ore mining in Karnataka in 2011 and lifted the same after imposing a cap of 30 metric tonnes in 2013.
Advocate Ninad Laud, representing Vedanta in the Supreme Court, said the company had also opposed Karnataka miners plea against fixing the floor price for NMDC as any order by court would have come in way of Vedanta’s auction plans.
There was an application by KISMA asking that the monitoring committee be directed to fix the base price of NMDC and NMDC be not allowed to have dual pricing, which means different prices for different states. So that application of KISMA has been dismissed. So they (Supreme Court) have allowed NMDC to price its ore as it likes.Advocate Ninad Laud, Vedanta’s Counsel
