SC order raises hope for mining industry in Karnataka

The SC raised the limit from 28 million tonne to 35 million tonne in Ballari and from 7 million tonne in Chitradurga and Tumakuru to 15 million tonne.

The Supreme Court order on Friday increasing the limit of mining in across three districts - Ballari, Chitradurga and Tumakuru – bolstered hope for those working in the sector.

The Supreme Court order on Friday increasing the limit of mining in across three districts - Ballari, Chitradurga and Tumakuru – bolstered hope for those working in the sector. (Mint)

The SC raised the limit from 28 million tonne to 35 million tonne in Ballari and from 7 million tonne in Chitradurga and Tumakuru to 15 million tonne.

“Conservation of the ecology and the environment must go hand in hand with the spirit of economic development and the fine balance between the two goals is what is sought to be achieved even now,” an SC bench headed by chief justice NV Ramana said, PTI reported.

The bench, also comprising justices Hima Kohli and CT Ravikumar, passed the order on plea seeking lifting of the ceiling limits of iron ore mining in these districts.

The court also referred to the May 20 order this year passed by the SC which had granted certain relief relating to the sale and export of iron ore.

“We welcome the order. It is long overdue. The initial cap was fixed in a non-scientific manner when the entire mining was stopped in Karnataka at 25 mt and 5 mt which was later raised to 28mt and 7 mt. In fact, the government of India, ministry of mines, steel, CEC, state government, mining producers have all said that there is no cap anywhere in India and let it be as per the prevalent laws of the country,” Basant Poddar, the former chairman and now member of the Federation of Indian Minerals Association (FIMI) told HT.

Karnataka’s mining sector has been among its most controversial as it continues to hang over the Bharatiya Janata Party (BJP) government under whose term in 2008, the issue made national headlines and the collapse of the saffron administration in 2013.

The industry became a political hot potato when then chief minister BS Yediyurappa had to relinquish power after the political face-off against his own cabinet colleague Gali Janardhana Reddy from the mineral-rich district of Ballari, about 320 km from Bengaluru.

A report by then Lokayukta Justice N Santosh Hegde had detailed the extent of illegal mining, losses to the state exchequer and large-scale and irreversible degradation of the environment in areas by mining lords, including the infamous “Reddy brothers”.

Halappa Achar, Karnataka’s minister for mines and geology, on Friday told HT that increasing the limits of these mines would bring much needed relief and help development works in the region. “This will increase revenues for the state and help development in the region. It will also create new employment for people of these districts. Our economy will also improve,” Achar said.

However, sector specialists such as Poddar said it was unlikely that Karnataka will “reach or breach” the 50 mt limit as several mines in the state will expire within the next one to two years.