Hindustan Times reported that facing acute shortage of iron ore, steel and sponge iron producers of Karnataka have demanded that state run NMDC, the only miner allowed to operate in the stateshould take steps to increase its production and lower prices, .
Mr Seshagiri Rao joint MD of JSW Steel said that "There are 37 units which are closed. Some of the units that have not closed down are operating at less than 25% capacity. Even integrated steel plants like ours are facing shortages. Our plant is operating at just 68% capacity."
Mr Suketu Shah joint MD of Mukand Steel said that "NMDC is not producing at the permitted levels of 12 million tonne per annum. In fact, it is operating at less than half the threshold. It has also ignored international market rates and charging higher prices, making things difficult for us."
Mr RK Goyal MD of Kalyani Steels said that "In the last few auctions, the off take has been less than 7%. It shows that the price is too high even for the industry that is starved of iron ore."
The industry has been facing shortages for well over a year after a Supreme Court ruling banned all iron ore mining activity in view of rampant illegal mining and disregard for environmental concerns. The industry that constitutes nearly a fourth of all steel produced in India is grappling with high operating costs that has seen 37 units shut shop this year. The average rate of utilization inside the mills is just 50%.