The Hindu : Karnataka / Bangalore News : Check corruption in mining: Opposition

Online edition of India's National Newspaper
Friday, Jul 29, 2005

Karnataka

Karnataka - Bangalore

Check corruption in mining: Opposition

Special Correspondent

Officials allegedly collecting money from mine owners and transporters of iron ore

BANGALORE: The Opposition in the Legislative Assembly led by the Janata Dal (United) Floor leader, J.C. Madhuswamy, spoke of rampant corruption in mining and transportation of iron ore and urged the Government to enforce strict regulations on mining. Participating in the discussion on the demand for grants of departments, Mr. Madhuswamy and the BJP chief whip, Visveshwara Hegde, said that officials in the Department of Mines and Geology and those in the Transport Department were involved in collecting money from mine owners and those engaged in transport of mined iron ore to the nearest port.

They said exploitation of minerals, particularly iron ore, was spread over several districts and even the deputy commissioners and the superintendents of police were unable to put down the operations of iron ore transporters owing to the high connections they enjoyed.

In a recent case, the Deputy Commissioner of Shimoga stopped an overloaded truck carrying iron ore and the driver on alighting from the vehicle offered a bribe of Rs. 500 to let him continue the journey. If the over-exploitation of the State's rich natural resources continued for another five years, it could seriously harm the environment and the health of the people, they said.

Mr. Madhuswamy said iron ore prices had risen in recent years following the huge demand from China which had entered into import agreements till 2007. From around Rs. 50 a tonne the price had shot up to Rs. 2,000 a tonne in certain mines. This had resulted in a huge demand for iron ore; even farmers without any money to mine had started entering into agreements with private mining companies to pay them a certain amount for every tonne of iron ore extracted from their land.

He said it was rather strange that government undertakings such as Mysore Sales International Ltd. and Mysore Minerals Ltd. had stayed away from iron ore exports. It should at least be ensured that the business of iron ore mining, transportation and export was properly regulated which in turn could fetch the Government a huge return.

Referring to the general administration of the State, Mr. Madhuswamy said it had declined sharply and that the Government was just dragging on. There was hardly any discipline in any of the government departments. In the Home Department, nearly 40 circle inspectors of police and around 15 deputy superintendents of police were awaiting posting for the past four months. In recent years, the administration had become top heavy with there being more number of IAS and KAS officers.

Development plans

The CPI (M) member, G.V. Srirama Reddy, speaking on the demand for grants said there was an immediate need to ensure that the zilla, taluk and the gram panchayats worked to a set plan. Development plans should be drafted only after the funds were released. The State should adopt the Tamil Nadu model where there was a separate directorate for rural development.

Mr. Reddy said the Government incurred a huge expenditure year after year on drinking water supply. Yet, there was shortage of drinking water in every village. It should finalise a comprehensive plan on the drinking water requirements of all villages and implement it over a period of time.

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