Karnataka Iron Ore Exports Delayed.

State government is putting in place RFID tags, smart cards to regulate movement of ore traffic.

Exports of iron ore from Karnataka are likely to be delayed by over three months, as the state government is yet to put in place the infrastructure to regulate trade. Though the Supreme Court (SC) had directed the government to start issuing export permits in May, the department of mines and geology needs more time to issue them, a top official said.

“SC had asked us to finalise the new rules and regulations, and we have notified them. However, we need at least three months to get ourselves equipped with the modern infrastructure before issuing export permits. We are also waiting for the central empowered committee, appointed by SC, to complete its survey and demarcation of mines in Bellary,” H R Srinivasa, director, department of mines and geology, said.

He said the department has initiated several new measures to regulate exports, like setting up of checkpoints, installation of barcoding and radio frequency identification (RFID) readers, and introduction of smart cards to monitor the movement of iron ore laden lorries. The state government has provided a budgetary support of four crore rupees to procure new equipment.

The department has identified 28 places to set up checkpoints, and is looking for land there. Land has been acquired in four places and the acquisition will be completed in three months, Srinivasa said.

“We have introduced barcoding and hologram for ore traffic. But this is not fool-proof. So, we will introduce smart cards, along with existing electronic permits for exporters. Mining companies are required to apply for transportation permits online. This has reduced our work pressure by 70 per cent and prevents duplication,” he said.

The department is issuing an average of 3,000 permits for transportation of ore every day.

Next, it would be making compulsory for lorries to use RFID tags, so that the identification gets automated at checkpoints. This will identify movement 200 metres away from the checkpoint. Three new electronic weigh bridges have been set up, and the fourth one is under way, to reduce congestion.

The third step is to replace paper permits with contact-less smart cards. The government has procured the software and hardware from Ahmedabad-based (n)Code Solutions, a division of GNFC Ltd. This will be made operational within six months, Srinivasa said.

More than a dozen companies, including Mineral Enterprises Limited, MSPL, Sesa Goa and Shree Kumaraswamy Mineral Enterprises, have applied to the department of mines and geology and are waiting for permits.

Karnataka had prohibited export from July 26, 2010, following allegations of widespread illegal mining and transportation to other states.

This year, it produced 33 million tonnes of ore, a decline of 33 per cent over the last year. The state earned a royalty of Rs 434 crore for the year.

Source : sify.com