With Karnataka banning prohibiting transport of iron ore to Goa by road, the sponge and pig iron plants in Goa are hit by a shortage of raw material and are now facing closure.
According to a notification issued by the North Karnataka District Administrator, the ban on transporting high grade iron ore from Karnataka to Goa which commenced on 14th June will continue till 30th September.
Goa Chamber of Commerce and Industry (GCCI) President Manguirish Pai Raikar said that they have initiated discussions with the Karnataka government to deal with this problem as six units in Goa are facing closure.
Raikar said Goa and Karnataka ore and steel industry had a symbiotic relationship as the ore brought from Karnataka was processed at the plants in Goa and supplied back to the steel factories in Karnataka.
Aparant Iron and Steel Pvt. Ltd., Sesa Industries Ltd., Shraddha Ispat Pvt. Ltd., Ambey Metallic Ltd., Goa Sponge & Power Ltd., and Srithik Ispat Pvt. Ltd., in Goa were dependent upon the ore brought from Hospet, Bellary, Chitradurga and Sandur regions of Karnataka,
All these units transport their requirement of ore by road with Aparant Iron and Steel Pvt. Ltd., getting 50 per cent of its requirement by rail.
During the financial year 2009-10 the six units in Goa consumed 9.96 metric tonnes of ore from Karnataka, while during the last financial year, the consumption leapt to 13.06 metric tonnes.
GCCI has taken up this matter not only with the North Karnataka Collector but also with the chief minister revealed Raikar.