The Supreme Court direction to the BJP-led Karnataka government to facilitate export of iron ore has put politics in Karnataka and Andhra Pradesh on a new trajectory.
The court’s order which makes it mandatory for the state government to lift export restrictions within 15 days has removed the last remnants of the irritants between Chief Minister BS Yeddyurappa and his two ministers, the Bellary-based mining barons, G. Janardhana Reddy who is minister for tourism; and G Karunakara Reddy who is revenue minister.
The Reddy brothers had made up with BS Yeddyurappa last year following central counsel, especially from powerful BJP leader Sushma Swaraj. But before that, the reddy brothers – who are among the biggest exporters of iron ore in the area – had an extremely acrimonious relationship with the Chief Minister.
The Yeddyurappa government banned export of iron ore from the state with effect from July 26, 2010 with the intention of curbing illegal exports. The Reddy brothers’ mining activities are in neighbouring Andhra Pradesh. But they are also alleged to have contracts with small mining companies in Karnataka from where they used to procure iron ore and transport it illegally through Andhra Pradesh. Ostensibly meant to curb illegal mining in karnataka, the ban was seen as an attempt by the chief minister to quell dissidence against him. The principal force behind the dissidents was seen as the financial might of the Bellary brothers.
The Reddy brothers also had strong political contacts in neighbouring AP where former Chief Minister YS Rajashekhar Reddy was a shareholder in the Obulapuram Mining Corporation (OMC). Forest Department officials are investigating how the border of karnataka and Andhra Pradesh were redefined so that the most lucrative mines fell in AP which was ruled by the Congress. The reddy brothers have said publicly in the past that they regarded YS Rajashekhar Reddy as their ‘elder brother’.
The jury is still out on whether any immediate monetary benefits will accrue to the late chief minister’s son Jaganmohan Reddy from the lifting of the export ban. But experts say it will be in the overall interest of the OMC revenue stream.
However, opposition parties say the ban itself was eyewash, merely a tactic used by Yeddyurappa to gain some time for fix the dissidents, because he knew all along, that ultimately the Supreme Court would strike down the ban.
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“The SC order clearly shows that the Yeddyurappa government was doing a ‘drama’ before the people that it is the saviour of natural resources. But, he allowed his own henchmen to export iron ore with fake permits even during the ban,” said Y S V Datta, spokesperson, Janata Dal (S).
The failure to formulate rules and regulations to curb illegal transport of iron ore shows that Yeddyurappa was not interested in taking action on illegal mining, opposition parties said.