Karnataka Sponge Iron Manufacturers Association (K-SIMA) has urged Vinay Kulkarni, Minister of State for Mines and Geology, to announce a special package for the revival of sponge iron units in the State.
T. Srinivas Rao, president of K-SIMA, who met Mr. Kulkarni during his visit to Ballari on Saturday to submit a memorandum in this regard, explained the plight of the manufacturers of sponge iron due to non-availability of iron ore, leading to a fall in production, and also mounting debts.
He said that the Government of Goa had gone to the rescue of the sponge iron industry there by announcing a special package. He told the Minister that of the 70 sponge iron units in the State, around 40 had been closed down while the remaining are struggling mainly due to non-availability of ore in the State.
“For want of raw material (ore), production had come down and debts are mounting. A couple of sponge iron units were sold as scrap while bankers are after recovery. Under these circumstances, the State government should come out with a special package by arranging for adequate availability of ore through the State-owned Mysore Minerals Limited and the National Mineral Development Corporation (NMDC), a Union government undertaking,” he said.
