PANAJI: Hopes run high for six steel units in Goa, which consume high grade iron ore from Karnataka and whose production has been disrupted on account of the abrupt decision by the Karnataka government to ban transportation of the raw material for making steel.

A meeting with the Goan steel units has been convened by the Deputy Commissioner of Karwar on August 26 to review the decision and according to the vice president of the Goa Chamber of Commerce and Industry (GCCI), Mr Manguirish N Pai Raikar, the issue is likely to be resolved in favour of the six Goan units.
Since July 31, the ban has affected production of Aparant Iron and Steel Private Limited, Sesa Industries Ltd, Shradha Ispat Pvt Ltd, Ambey Metallic Ltd, Goa Sponge & Power Limited and Shrithik Ispat Limited.
The Karnataka government has imposed a total ban on the movement of iron ore for both, export and domestic use and has put restrictions on the issue of mineral dispatch permits for domestic use by steel mills. “Even the National Mineral Development Corporation (NMDC), a government undertaking, was not given the permit,” said Mr V N Singh, the general manager of Aparant Iron and Steel Pvt Ltd and added “The Railways too has been told not to transport ore till the ban is lifted.” 
Since the ban has been effected, assurances are pouring in from all quarters, even from the Karnataka Chief Minister Mr B S Yeddyurappa but till now the net result is zero, said Mr Singh. “Our stocks are depleting and in the next two days we have no option but to reduce production by 20 per cent,” he said. The Karnataka politics is disturbing the whole country, he added.
It is learnt that Sesa Goa has received a permit to transport ore lying in Karnataka. A Sesa Goa official denied this and said a meeting was scheduled some weeks ago with the Deputy Commissioner of Uttar Kannada who assured them that Sesa’s case will be taken up by the Karnataka government. Even as the six Goan steel units manufacturing pig and sponge iron are hoping that the ban will be lifted, Mr Raikar is confident that the local industry will not be affected.