Karnataka Forest Min. halts Iron Ore Mining Lease in Devadari Hills
Bengaluru: In a significant jolt to Prime Minister Narendra Modi's 100-day agenda to start mining iron ore in Devadari Hills of Sandur in Ballari, Karnataka’s Minister for Forests and Environment, Eshwar Khandre, on Saturday ordered a halt to the leasing of 401.5761 hectares for iron ore mining in the Devadari Hills.
This comes days after the Union Minister of Heavy Industries and Steel, H.D. Kumaraswamy had directed officials of Kudremukh Iron Ore Company Limited (KIOCL) to commence mining activities in the Devadari forest area.
Minister Khandre highlighted that KIOCL has previously failed to comply with the Centrally Empowered Committee (CEC) directives appointed by the Supreme Court regarding its mining activities in Kudremukh National Park, located in Mudigere taluk of Chikmagalur district. The company's inability to implement remedial measures for its past operations prompted the decision to halt new leases in the Devadari Hills.
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Environmentalists have raised concerns about the potential ecological impact of mining in the Sandur forests, fearing it could lead to the felling of approximately 99,000 trees. They argue that the mining activities would devastate local wildlife and communities, urging the Ministry of Environment, Forest and Climate Change to suspend clearance for the Devadari mining project.
In response to these environmental concerns, Union Minister Kumaraswamy assured that there would be no deforestation. He noted that the state government had approved mining on over 404 hectares for the Devadari project in 2019, with subsequent approval from the Central Environment Department. Kumaraswamy emphasized that KIOCL would undertake compensatory afforestation, planting an alternative forest over 808 hectares at a cost of Rs 194 crore before beginning iron ore extraction. He stressed that the Devadari project aims to boost steel production and create jobs.
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India proposes preferential trade agreement with Mexico to deal with high tariffs
New Delhi (PTI): India has proposed a preferential trade agreement (PTA) with Mexico to help domestic exporters deal with the steep tariffs announced by the South American country, a top government official said on Monday.
Mexico has decided to impose steep import tariffs - ranging from about 5 per cent to as high as 50 per cent on a wide range of goods (about 1,463 tariff lines) from countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
Commerce Secretary Rajesh Agrawal said that India has engaged with the country on the issue.
"Technical level talks are on...The only fast way forward is to try to get a preferential trade agreement (PTA) because an FTA (free trade agreement) will take a lot of time. So we are trying to see what can be a good way forward," he told reporters here.
While in an FTA two trading partners either significantly reduce or eliminate import duties on maximum number of goods traded between them, in a PTA, duties are cut or removed on a limited number of products.
Trading partners of Mexico cannot file a compliant against the decision on imposing high tariffs as they are WTO (World Trade Organisation) compatible.
The duties are within their bound rates, he said, adding that their primary target was not India.
"We have proposed a PTA because its a WTO-compatible way forward... we can do a PTA and try to get concessions that are required for Indian supply chains and similarly offer them concessions where they have export interests in India," Agrawal said.
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Citing support for local production and correction of trade imbalances, Mexico has approved an increase in MFN (most favoured nation) import tariffs (5-50 per cent) with effect from January 1, 2026 on 1,455 tariff lines (or product categories) within the WTO framework, targeting non-FTA partners.
Preliminary estimates suggest that this affects India's around USD 2 billion exports to Mexico particularly -- automobile, two-wheelers, auto parts, textiles, iron and steel, plastics, leather and footwear.
The measure is also aimed at curbing Chinese imports.
India-Mexico merchandise trade totalled USD 8.74 billion in 2024, with exports USD 5.73 billion, imports USD 3.01 billion, and a trade surplus of USD 2.72 billion.
The government has been continuously and comprehensively assessing Mexico's tariff revisions since the issue emerged, engaging stakeholders, safeguarding the interests of Indian exporters, and pursuing constructive dialogue to ensure a stable trade environment benefiting businesses and consumers in both countries.
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Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that Mexico's decision is a matter of concern, particularly for sectors like automobiles and auto components, machinery, electrical and electronics, organic chemicals, pharmaceuticals, textiles, and plastics.
"Such steep duties will erode our competitiveness and risk, disrupting supply chains that have taken years to develop," Sahai said, adding that this development also underlines the little urgency for India and Mexico to fast-track a comprehensive trade agreement.
Domestic auto component manufacturers will face enhanced cost pressures with Mexico hiking duties on Indian imports, according to industry body ACMA.
