Centre okays mining in Bellary forests

NEW DELHI: The Centre has approved diversion of forest land in Bellary for mining on the condition that the Karnataka government put in place a mechanism to control illegal mining including evidence of action in cases booked against violators as well as action taken on the Lokayukta report.

This is likely to put the Bellary brothers in a spot and at the same time intends to play off the powerful mining lobby against Karnataka CM B S Yeddyurappa. The moratorium imposed on permission for fresh mining leases issued in October 2010 will continue.

The Karnataka government has clamoured for mining operations in Bellary, but may find it difficult to meet Union environment minister Jairam Ramesh's condition for the fear of annoying the powerful Reddy brothers -- the mining tycoons from Bellary who can destabilize the Yeddyurappa government.

The conditional approval comes at a time when there is continued concern over illegal mining in the country especially Bellary district area where rampant violations were reported by the state Lokayukta and the Forest Advisory Committee (FAC).

The FAC in its January 18 meeting allowed M/s JSW Steel Limited, Bangalore, to divert 200.73 hectares of forest land for extraction of iron ore and manganese in Kumaraswamy range, Sandur Taluk of Bellary district. Stage-I clearance was given in 2008.

In a letter to the Karnataka CM, Ramesh said that in the backdrop of reports of illegal mining in Bellary district, the state government will have to establish a "foolproof mechanism" to control violations in a time-bound manner. The state government will have to submit a list of cases booked against violators and action taken against them and submission of an action taken report on the Lokayukta report. The ministry said that the ban on giving new mining leases in Bellary will continue till these steps are taken.

The Lokayukta report had uncovered major violations and systemic corruption in mining in Bellary, including in the allowed geography, encroachment of forest land, massive underpayment of state mining royalties relative to the market price of iron ore and systematic starvation of government mining entities.

Rising global iron ore prices driven by Chinese demand has brought focus to the iron ore rich Bellary region of Karnataka. This iron ore is alleged to have been illegally mined after paying a minuscule royalty to the government. The major irregularities involve mines in Bellary, including those of Obulapuram Mining Company owned by G Karunakara Reddy and G Janardhana Reddy who are ministers in the Karnataka government.