Mining lobby was nemesis of JD(S) govt

Over the years successively the liquor lobby, granite lobby and real estate lobby have strongly influenced politics in Karnataka.

Now, it is the turn of the mining lobby to contribute to the rise and fall of state governments as Indian iron ore prices in the international market inch towards an all-time high of $200 per tonne.

In January 2006, when the JD(S) pulled off a coup against the then Dharam Singh-led Congress-JD(S) coalition government, the mining lobby had played a crucial role. Most of the JD(S) legislators from the iron ore-rich Bellary district had supported the formation of the JD(S)-BJP government.

However eventually, the mining lobby within the JD(S) as well as the BJP contributed to the downfall of the alliance, not once but twice.

When H D Kumaraswamy was sworn in as the chief minister in February 2006, two powerful mining magnates who stood next to him physically (seen in pictures) and metaphorically were cousins Santosh Lad (JD-S) and Anil Lad (BJP), both legislators from Bellary district.

However, within three months, the mining lobby had to face the music when the JD(S), which was in charge of the mining ministry (Kumaraswamy himself held the portfolio as an additional charge), sought to "regulate" illegal mining in Bellary district.

There was strong pressure on the government to check illegal mining which had become a national issue. On the other hand the mining interests felt that the JD(S) leadership was using the issue to muscle its way into the business.

Measures to "control" the mine owners who were reaping a windfall by exporting iron ore to China earned the JD(S) the wrath of some top mining companies and its own party members who were into mining. Though, some of the JD(S) legislators openly opposed the government move, it fell on deaf ears.

Mining interests eventually hit back when a BJP legislator G Janardhana Reddy, who owns the Obalapuram Mining Company which exports iron ore to China, accused the then chief minister Kumaraswamy in the legislature of accepting a Rs 126 crore bribe from those engaged in illegal mining. These remarks were later expunged from the records on procedural grounds.

"Money has changed hands only to abet illegal mining. Kumaraswamy is the beneficiary of the bribe. We seek a detailed investigation," Reddy had alleged. This allegation marked the beginning of a protracted battle between the JD(S) and the mining lobby which is still on. Reddy is fighting various court cases over the issue.

In a bid to clamp down on the mining lobby, the government ordered a judicial probe into all the mining leases sanctioned in Bellary district in the last 25 years. The decision was not supported by the BJP.

Further, the JD (S) mounted pressure on the BJP to initiate action against Reddy for making the allegation against Kumaraswamy. Reddy was suspended from the party for only a brief period and the judicial probe was terminated abruptly by the government.

Reddy went on to reveal that Kumaraswamy's family was engaged in iron ore trading through a newly-formed company. He further accused the chief minister's family of coercing Bellary mine owners to route their exports through that company.

By then, the mining magnates, who had supported the JD (S)-BJP government had deserted Kumaraswamy. Repeated efforts to woo them back failed.

Just when the JD (S) was under the impression that the mining lobby had accepted defeat, a prominent BJP minister B Sriramulu, who handled the tourism portfolio, in August charged Kumaraswamy with conspiring to eliminate him.

Sriramulu, who is backed by Janardhana Reddy, even filed a police complaint against Kumaraswamy. An enraged JD(S) asked the BJP to initiate action against Sriramulu. Before the BJP could react, Sriramulu tendered his resignation.

The government fell in early October after Kumaraswamy failed to transfer power to the BJP, citing the hostile attitude of the BJP as represented by Sriramulu's allegations.

When the BJP tried to forge a fresh alliance with the JD (S), the latter imposed a condition that Sriramulu should not be part of the cabinet. The JD (S) also wanted the mining ministry to control the mining lobby. However, the BJP was not interested in accepting either of the two conditions. This is one of the reasons that led to the fall of the government for a second time.