Ballari: A large number of people dependent on the mining industry in ore-rich Ballari who had huge bank borrowings urged the state government to offer a one-time settlement (OTS) scheme which is expected to pave way for other financial institutions to settle the long-pending bad debts of those who are in the lurch due to the halting of mining in Karnataka.
Iron ore extraction activity in Ballari region has been on hold for over two years since 2011, leaving sponge iron plants, truck and mining machinery owners in a spot. With no source of income, their loans are soaring with banks issuing them notices to repay the debt.
Among the mining dependents, the sponge iron plants in Ballari-Koppal region have been hit the hardest. Of the 70-odd sponge iron plants in the region, about 60 plants have shut shop and several others have suspended operations partially as the mining ban in the state has crippled mining operations and created a shortage of raw material for steel units.
In April 2013, the apex court lifted the ban on iron ore mines in Ballari, Chitradurga and Tumakuru districts of Karnataka. Out of 115 mines (categories A and B) that are eligible to start operations after the Supreme Court’s verdict, only 24 mines have commenced operations so far.
Sources in Karnataka Sponge Iron Manufacturers Association said that sponge iron plant operators are in a deep crisis as the imports of finished steel have multiplied six times this year and domestic demand has gone down substantially. “Association has send letters to the government and state-owned miner NMDC to provide us with raw material but there is no response from them”, added a source.
