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Sesa Goa pins hopes on Court ruling on iron ore export ban

20 Oct 2010 Evaluate

Sesa Goa, a Vedanta Group company, expects the Karnataka High Court to give its verdict on the State Government ban on iron ore exports by the end of this month. The High Court has completed the hearing and a verdict is expected by month-end.

 

The Court has been hearing a batch of petitions filed by nine mining companies led by Sesa Goa against the ban on iron ore exports imposed by the Karnataka Government in July. Restrictions on transportation of ore imposed by the Goa Government and issue of overloading trucks have also hit the company.

 

The industry has appealed to the State to allow transport of goods between 6 a.m. and 10 p.m. instead of 6 a.m.-6 p.m. Freight costs for the company in the second quarter increased by $20 a tonne largely due to hikes imposed by the Railways. With these constraints, the company has halved the annual volume growth target to 10 per cent from 20 per cent.

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