In a major step to revive the iron ore trade, the Karnataka Cabinet on Thursday approved the Karnataka Non-Major Ports Iron Ore Handling Policy – 2025, paving the way for the resumption of import and export of iron ore through the state’s 13 non-major ports.
The move is expected to significantly boost trade, given that Karnataka is one of India’s leading iron ore–producing states. The policy covers all aspects of export, import, and iron ore handling activities at the non-major ports along the state’s 343.3 km coastline. Karnataka currently has one major port — New Mangalore Port Authority — and 13 non-major ports, including Karwar, Honnavar, Malpe, Belekeri, Tadadi, Kundapura, and Old Mangalore, among others.
A 2010 government order had barred iron ore exports from 10 of these ports. However, a 2022 Supreme Court judgment permitted the export of iron ore mined within Karnataka, prompting the Karnataka Maritime Board (KMB) to prepare a comprehensive policy framework.
Revenue Measures & Fees
The new policy is designed to generate revenue for the state through a slew of charges, including registration fees, licence fees for land allotment, wharfage charges, Minimum Guarantee Throughput (MGT) deposits, security deposits, penalties, and a recurring pollution mitigation, safety and supervision fee of ₹13 per tonne of cargo.
Law and Parliamentary Affairs Minister H.K. Patil clarified that the provisions are entirely prospective. “Nothing will be retrospective. We have taken care to ensure this, given ongoing litigations and past Lokayukta reports,” he said.
Eligibility & Land Allotment
Exporters will be required to pay a registration fee of ₹10,000 to the Directorate of Mines and Geology. Land allotment for iron ore handling will be made on a first-come, first-served basis. Only entities with valid DGFT registration, an Importer-Exporter (IE) Code, and no pending dues with the concerned port—along with necessary customs authorisations—will be eligible.
Other Cabinet Decisions
The Cabinet also approved the Karnataka State Haj Committee Rules, 2025, aimed at improving transparency and streamlining the functioning of Haj camps in Bengaluru, Mangaluru, Mumbai, and Hyderabad.
In addition, the government cleared several key amendments, including:
- Renaming Mysuru Mahanagara Palike as Bruhat Mysuru Mahanagara Palike
- Approval of the Drugs and Cosmetics (Karnataka Amendment) Bill, 2025
- The Karnataka Cine and Cultural Workers (Welfare Amendment) Act, 2025
- The Karnataka Judicial Services (Amendment) Rules, 2025
The new iron ore handling policy is expected to boost port activity, enhance trade efficiency, and contribute significantly to Karnataka’s maritime and mineral economy.
