Nationalise iron mines, streamline tax

The campaign against the mining lobby got further push with an expert calling for nationalisation of iron ore mines.

“Iron ore mining, which is taking place in Karnataka, is loot. It is dacoity, worse than exploitation. The royalty paid by mining companies of highest grade iron ore is Rs27 per metric ton while it is being sold at Rs4,000 to Rs6,000 per metric ton. The royalty for lower grade ore is Rs20 and Rs15. They should rather give a royalty of Rs3,500 to the government as Rs27 is nothing,’’ said Prof Ravivarma Kumar, a constitutional expert.

Kumar was speaking on the sidelines of Hasiru Dhwani organised by Karnataka Gandhi Smaraka Nidhi in the city on Sunday. He said mining companies considered themselves as owners and failed to realise that royalty was a form of tax paid to the government. Iron ore should be auctioned. The government was hand in glove with private agencies, he said.

“The Centre should nationalise iron ore mines and streamline the tax collection system. Exploitation of mining wealth and all resources including sand, stone and granite is happening everywhere, especially in Bellary. The government does not seem to be doing anything to stop this exploitation. Investigation reports have shown that truckers pay Rs500 to each police station from Bellary to Mangalore port while exporting the ore. If this is the case with the government agencies, what will be the case with other agencies,’’ he said.

Recently, Lokayukta Justice Santosh Hegde had sought a detailed report on mining and the chief minister, who is also the state forest minister, decided to take serious note of the mining activities in the state and cap illegal ones. But action on this was still awaited, he said.

Reacting to the mining scenario in the state and loss of forest cover due to this, leader of Chipko movement Sunderlal Bahuguna told DNA, “It is sad to learn that something like this is happening in the state. Forest is a natural reservoir and is not meant for commercial activities. The government should take stern action in stopping the activities.’’

Recollecting the example of limestone mining in Himachal Pradesh and various parts of India, he said people there gave up sleep, came out of their homes, and started a movement, which is lacking here. Apart from the government, the people should also unite in stopping such activities, he said.He said Western countries had begun destroying the culture of India.

“Indian culture is forest culture and development should be related around it for a healthy and better future. But today, it is driven by economic development. While cities are
growing, green cover is being lost. This should be stopped,” he said. He urged the city youth to plant more trees whenever they got the occasion to do so.