Kudremukh Iron Ore Company Limited (KIOCL): The Death Knell and Beyond

This judgment is a death blow to KIOCL. We have just a three-year grace periodto wind up operations at Kudremukh. This mine is the only source of rawmaterials for the company, without which the company cannot survive. Noother company, placed under similar circumstances, has been asked to shutshop. We were hoping for tougher terms of lease but instead have been asked toshut shop! Going by the tenor of the judgment and the range of issues, it may notbe possible to get the judgment revoked. Finding a new mine site would be verydifficult under the highly competitive conditions prevailing in the country. Andeven if we find one, migrating to the new location would be a very expensiveproposition, one that we can ill afford at this point in time. We do not have anydebts or liabilities, but have thousands of dependent families who depend onthe functioning of the mine. And what about the huge economic loss that KIOCL’sclosure would bring to the country? It is unbelievable that the Supreme Courthas been so harsh on a public sector company.