The Karnataka Iron and Steel Manufacturers Association and JSW Steel vice-chairman Sajjan Jindal met with Karnataka chief minister Sadananda Gowda on Wednesday and appealed to to intervene and support the industry that is facing a severe shortage of steel owing to a court-ordered ban on mining in Bellary. The chief minister has assured the industry that it will file a petition in the Supreme Court.
Jindal said he has no plans to shut down the plant in Karnataka. ?I’m optimistic about JSW’s survival,? he said. However, the cost of steel has shot up and the small scale industries are facing the brunt of it, Jindal said.
The association wanted the state to ensure supply of ore under long term contracts from NMDC, the only company which has been allowed to operate in order to meet the domestic demand. The ban on mining has rendered over two lakh skilled and unskilled employees jobless while the total revenue loss to the state is around R6,000 crore, the association said. It has asked the government to ensure continuous supply of 2.5 million tonne of ore per month at market price, as per the court orders and demanded e-auction of the existing stock of ore on a daily or alternate day basis .