The Reddys were less cocky, for the road ahead promises to be rocky

The looting included land and what lies beneath

As in the previous year, in 2010 too, the issue of illegal mining dominated the political scene till land scams and illegal denotifications took attention away from it.

Still, the year witnessed a major setback for the Reddy brothers, who are at the centre of mining controversies. There are no takers for Minister Janardhana Reddy’s repeated claims that he has no mining stakes in Bellary.

He may not have mining pits in Karnataka as such. But his company’s mining lease areas are bordering Andhra Pradesh and Karnataka. He is also an influential minister who could shake the very chair of Yeddyurappa. The Chief Minister has not been able to introduce any reforms or changes in the mining sector without his consent.

But what is surprising is that mining is equated with just Reddys. There are more than 100 mining operators in that district. And, they have been in business for decades. Prominent politicians of the Congress are also into big time mining.

A couple of companies which are questioning the Reddys have the support of the Congress. Otherwise, surprisingly, none of the mining firms have opposed either the Reddys or the government for imposing a ban on export of iron ore.

This also gives an impression that there is a cartel formed to protect illegal mining business.

The issue of illegal mining gained importance after the Lokayukta began its probe into illegal mining. At the same time, Andhra Pradesh government ordered for a CBI probe.
Before the government imposed restrictions, Karnataka used to generate annually about 60 million tonnes of iron ore. About 70 pc of the ore extracted used to be exported. More than 90 companies have been into mining in Bellary. Demand for ore (fines) increased abroad in 2003. The price of ore (fines) varies from Rs 3,000 to 7,000 per tonne.
The government, instead of stopping illegal mining, has imposed the ban on the grounds that ore should be used only for domestic use. There is no effective monitoring system to see whether the ban is in place.

There has been no let up in levelling charges of illegal mining against the Reddys. A series of complaints have been filed before the Lokayukta and the governor accusing the Reddys of constantly shifting the boundary marks between the two states and supporting illegal mining activities besides the transport of ore.

The issue of illegal mining surfaced whenever the Yeddyurappa-led government was in crisis. In October 2009, the Reddys rebelled against Yeddyurappa seeking his ouster. That was the time when the Andhra Pradesh forest department too served notices to OMC on the charges of violating the norms.

The Central Empowered Committee apopinted by the Supreme Court in its report  in November 2009, recommended that mining activities should be stopped by six companies including OMC, operating in the disputed boundary area.

 It also recommended a ban on mining in border areas till the boundaries of mining lease areas are demarcated. In May, the court allowed OMC to resume its mining activities with certain conditions.

No offenders
When it comes to illegal mining, Yeddyurappa himself spoke in the Assembly as if he was on the Opposition benches. He admitted that illegal mining had been rampant since 2003.

Among many things, he had said a whopping 4.03 crore tonnes of iron ore had been extracted illegally since 2003.

Even the Belekeri iron ore theft case embarrassed the government. The CID is probing into the missing of five lakh tonnes of iron ore from the port in Uttara Kannada district.
The goverment, at least on record, tried to curb illegal mining by measures like issuing licences only to those who extract ore for value addition. Also, it decided to impose a toll on ore carrying trucks but it was implemented only after imposing the ban on ore export.
Lokayukta Justice Santosh Hegde has been saying that export of ore is still going on. He has said that he has documentary evidences to prove the same. So far the government has not countered this.

The government has not yet acted on the first report of the Lokayukta on illegal mining. Justice Hegde is expected to submit the final report by March next. He has announced that he would reveal the names of those who are into illegal mining.

For the Reddys, however, it would not be a happy ending of the year, nor does 2011 promise to be a comfortable year either.

Their relationship with Yeddyurappa, which soured in 2009 has not improved. Their power within the party, or the clout of their sponsors in the BJP leadership has weakened in the aftermath of illegal mining becoming a national level controversy.

To add to their woes, the Andhra Pradesh High Court has ordered that the CBI probe the illegal mining. This is only likely to step up pressure on the Karnataka Government to do the same.

Their business partner across the border, Jagan Mohan Reddy is out of the Congress, and his political future is uncertain.

A second report by the Lokayukta on illegal mining is on the anvil and the panel empowered by the Supreme Court on illegal mining visited Bellary only last week and collected evidence.

 Minefield

* 4.03 cr tonnes of iron ore exported illegally since 2003
* Reddys accused of shifting boundary marks in Karnataka-Andhra border
* 5 lakh tonnes of iron ore went missing from Belekeri port
* Govt bans export and transport of ore
*  Lokayukta alleges the govt’s ban ineffective