Centre's probe not to hit Reddys

Bellary lords have their mines in Andhra

Many mining lords in Bellary, including the Reddy brothers, have secured leases to mine iron ore in Andhra Pradesh. But none of them come under the ambit of the Central probe as it is specific to Bellary district alone, official sources said.
MLA G Somashekhara Reddy, brother of Tourism Minister Janardhana Reddy, told Deccan Herald that their mines are located only in Andhra Pradesh.
“It is good that a probe has been ordered by the Centre in Bellary. We do not have a single mining lease in Karnataka,” he stated. Asked what if the Centre decides to conduct the probe to mines in the neighbouring Andhra Pradesh also, he said, “My brother Janardhana Reddy is very close to Andhra Pradesh Chief Minister (Y S Rajasekhara Reddy). Nothing will happen to us.”
Not only the probe by the Centre, none of the regulations imposed by the State government during the last one year affect the Reddy bothers in any way.
Banning mining on patta land, stopping issue of new mining leases, tightening rules to mine on forest land and imposition of environment protection fee for those mining on non-forest land - are some of the steps the State government took to regulate the mining industry.

Seeing red at CM

Then why ministers from Bellary are seeing red at CM of late? Sources cite three recent developments - as reasons that irked Bellary trio - Janardhana Reddy, Karunakara Reddy and Sriramulu.
 First, the CM writing to the Union government in February 2009 to conduct a joint survey of the disputed Karnataka-Andhra Pradesh border area, where Reddy brothers are allegedly doing illegal mining, without consulting them. If the survey is done and if the findings prove that Karnataka territory is encroached upon, the Bellary trio will be in deep trouble.
Karnataka Lokayukta too has gone into the issue and recommended the joint survey. In fact, soon after the CM wrote the letter, the Centre’s Indian Bureau of Mines fixed the date for the survey (May 27). But due to some ‘technical’ reasons, as officials claim, it has been put off indefinitely. Second, Yeddyurappa blocking transfer of officials, especially those of the Forest, Mines and Geology, Revenue department and Home department in Bellary.
It is said that hardly any official of these departments were transferred in Bellary during the last one month. For the Reddy brothers, having officials of their choice in the key positions in the district is most important for their business. They are actually feeling the pinch of the CM’s decision in this regard and so are crying foul, sources said.
Third, the CM has mounted pressure on the Centre to increase royalty on minerals, including iron ore. Yeddyurappa, during his June 2 visit to Delhi, submitted a memorandum to the Union Finance minister in this regard.

Regulations

* Ban on issuing new mining leases
* Complete ban on mining on patta land
* Imposing environment     protection fee on non-forest       
    land mining
* Tightening rules to issue mining lease on forest land