While politicians allowed mining licences to private enterprises, they denied permission to Karnataka government-owned Kudremukh Iron Ore Company Limited.
While politicians allowed mining licences to private enterprises and individual companies, they denied permission to Karnataka government-owned Kudremukh Iron Ore Company Limited (KIOCL).
The mini-ratna firm, after expiry of its licence in 2005, had applied six times seeking mining lease in one of three places — Hospet, Sandur or Bellary. Former KIOCL executives say the Mangalore-based company’s request was rejected as it could not grease the palms of greedy politicians.
“We started applying for lease in Hospet, Sandhur and Bellary in Ramanadurga range in 1999 as we knew that the mining would come to an end in Kudremukh range in 2005. There was a big block of ore in Ramanadurga range in Sandhur but the government had not given us the permission as a result the company lost its captive mines,” said a former executive of KIOCL.
KIOCL carried out mining in Kudremukh in Aroli range of Western Ghats from 1975 to 2005 under licence from the central government, spending no amount towards transport. Mining began as a result of an MoU between India and Iran. It was the first steel company in India and was the first in the world to transport ore in a pipeline in slurry form, fully utilising the elevation of the Western Ghats.
“The government went head over heels to clear the private companies to mine by opening a single-window system for them, while they closed the doors for KIOCL. Our unions BMS, HMS and INTUC fought tooth and nail with the government. But nothing moved the government as a result over 60% of the workforce moved out of KIOCL either on voluntary retirement or on resignation.
Today, the mini-ratna company is fully dependent on the morsels thrown by the National Mineral Development Corporation based in Hyderabad,” said the ex-KIOCL executive.
Union leader of the company said politicians could not satisfy as the firm was owned by the government. A former of KIOCL, N Nagaraj, who now works with a private company in Bellary, said that mining operation in government sector was minimised and private operators given the control as it would turn out to be new cash machine for the political parties.
“I remember, all these politicians named in the Lok Ayukta report wanted the KIOCL mining operations to be closed and later lobbied with the government to allow private enterprises to mine in Hospet, Bellary and Sandur,” said Nagaraj.
“There were environmental concerns also in the mining sites in Aroli range like Gangamoola and Gangadikal. Environmental activists had raised a hue and cry about the impact on environment from mining in Kudremukh. But that is not the reason why the government stopped mining there. It was done to benefit the private sector,” he said.
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