The illegal export of iron ore from Karnataka reached alarming proportions in the last seven years. The state saw over 30 million tonnes of the ore being exported from various ports in the country. Last fiscal (2009-10) alone, the illegal exports were to the tune of 7.1 million tonnes, a growth of a whopping 110 per cent over the previous year.
At the same time there had been a drop of 20.7 per cent in the export of legally permitted iron ore to 6.07 million tonnes during the year compared to the previous year.
Admitting rampant illegal mining in Karnataka, chief minister B S Yeddyurappa told the state legislative assembly, “Over the past seven years, the export of illegal iron ore was higher than legal exports. There is a mafia behind the illegal mining. Fake permits are being used to transport iron ore and its illegal transport is causing heavy damage to the state roads.”
He said, some politicians, forest officials and police department officials are involved in this illegal business with the government facing heavy revenue losses. The illegally mined ore has not only been exported from the ports of Karnataka but also from Goa, Krishnapatnam, Vizag, Kakinada and Chennai.
Quoting a report, he said there are over 15,000 illegal mines under operation across the country, while the number of valid mining leases are only 8,700. Karnataka accounts for 8 per cent of the 164,000 hectares of forest land under mining in the country.
Yeddyurappa said, his government has taken a number of steps to check illegal mining in the state. In this direction, the government came out with a new mining policy focusing on value addition. Fresh mining leases would be given only to those who create value locally.
He said, a booklet highlighting illegal mining being carried out in the state for the past 10 years would be published. The book would bring to light the negative impact of mining on various sectors. It would be distributed to all MLAs, MPs, CMs, the Prime Minister and President.
Referring to the Lok Ayukta report on illegal mining carried out between January 1, 2000, and March 22, 2006, the chief minister said the Bharatiya Janata Party government was not in power during this period.
But, it was the Congress and Congress-JD(S) coalition governments that were in power. These parties were solely responsible for illegal mining. “The time has now come to put a break on this illegal mining,” he said.
The Lok Ayukta report had recommended action against two officers - Basappa Reddy, former director of mines and geology, and Gangaram Baderia, secretary, for giving mining permits on patta land. A departmental enquiry is presently underway against them, he said.
As recommended by the Lok Ayukta, he said, the issue of transport permits for iron ore movement would be reviewed comprehensively. The department of mines and geology would issue permits only for seven days instead of bulk export permit for 30 days. The entire process will be computerised and introduce a barcoding and hologram on transport permits.
The chief minister said, he has urged the Centre to initiate action against the customs officials at Belekeri port from where close to 500,000 tonnes of iron ore was illegally shipped out. He has written to the Central Vigilance Commission to take action.
In an effort to curb illegal mining, the state government plans to modernise 22 check posts. The department of mines is also setting up 13 integrated checkposts. The department has conducted raids on godowns where illegally mined iron ore was stored in the districts of Bellary, Chitradurga and Tumkur and recovered 650,762 tonnes of iron ore. This ore was auctioned for Rs 39.1 crore, he said.
Yeddyurappa said, after assuming power, the BJP government impressed upon the Centre to revise royalty rates on iron ore.
As a result, the royalty on iron ore has increased to Rs 320 crore from Rs 80 crore earlier. The state government has also introduced forest development fee and collected Rs 336 crore during 2009-10 and Rs 187 crore during the first quarter of the present fiscal.
