Posted on 01 Dec 2025
Karnataka has approved a new iron ore export policy for its non-major ports, reopening a route that was closed for over a decade. The move provides a formal operating framework for exporters and marks a structural shift in how the state manages ore shipments, Kallanish notes.
The Karnataka Non-major Ports Iron Ore Handling Policy, 2025 applies to ports under the Karnataka Maritime Board. It introduces a standard operating procedure covering registration, licensing, land allotment, wharfage and compliance requirements. The policy includes a INR 13/tonne ($0.16/t) recurring fee for pollution mitigation, safety and supervision.
Karnataka, a key iron ore-exporting state, banned iron ore exports from ten non-major ports in 2010 after widespread irregularities in mining and transportation.
These ports include Karwar, Tadadi, Bhatkal, Malpe, Old Mangalore, Belekeri, Honnavar, Kundapur, Hangarkatta and Padubidri. Several were linked to major investigations, including the case of large volumes of seized ore that disappeared from Belekeri.
The Supreme Court allowed exports to restart in 2022, but only under India’s national policy. The new state policy now establishes clear procedures for future shipments. It applies only prospectively, as several cases related to past violations remain before the courts.
According to the cabinet note, the framework is also designed to enhance revenue collection. Income will come from registration and licence fees, minimum guarantee deposits, security deposits and penalties for non-compliance. The state expects more predictable monitoring and reduced disputes between operators and authorities.
Industry participants say the move could gradually improve India’s coastal logistics for ore, though port capacity remains limited. Most major exporters continue to rely on large ports outside Karnataka for bulk shipments due to deeper draughts and established infrastructure.
The policy signals Karnataka’s attempt to balance export activity with stronger oversight. Market participants will watch closely how quickly non-major ports adapt to the new system and how much ore movement shifts towards the state’s coastline.
Source:Kallanish
